Steven Is 27 Years Old and Has a Total AGI

question 78

Multiple Choice

Steven is 27 years old and has a total AGI of $110,000 in 2016. He contracts pneumonia in 2016 and incurs a medical bill that totals $7,500. He withdraws $7,500 from his traditional IRA to pay the bill. Which of the following is true?

• A)He is not subject to penalties on the IRA withdrawal because it was for medical expenses.
• B)He is not subject to penalties on the IRA withdrawal because he was disabled by pneumonia for 2 weeks.
• C)He is subject to penalties on the IRA withdrawal because a person may not take a withdrawal from a traditional IRA until they are 59 ½ years old no matter what.
• D)He is subject to penalties on the IRA withdrawal because the withdrawal did not cover a portion of medical bills that exceeded 10 percent of his AGI.
• E)None of the above is correct.

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Definitions:

Job Redesign

The process of altering a job's structure or content to improve satisfaction, efficiency, and productivity among employees.

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The process of increasing the number and variety of tasks that an individual performs within their job to enhance job satisfaction.

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A strategy where employees rotate between different jobs or tasks within an organization to gain varied skills and reduce monotony.

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