Which of the Following Statements Is True

question 1

Multiple Choice

Which of the following statements is true?

• A)A distribution rollover from a retirement plan can only be done as a direct transfer from one account to another account.
• B)The trustee must withhold 10 percent of the amount distributed whenever assets are transferred from one retirement plan to another retirement plan.
• C)If a taxpayer decides to rollover an IRA to a new account, then the whole IRA must be rolled over.
• D)A taxpayer is allowed only one direct transfer each year from one retirement account to another retirement account.
• E)There are no current-year tax consequences for a direct transfer.

---

Definitions:

Leadership Abilities

Skills and qualities that enable an individual to guide, influence, or direct the performance and progress of a group toward achieving specific objectives.

Exit Strategy

A planned approach for a business owner or investor to exit their investment in a company, typically through selling or transferring ownership.

Merge

The combination of two or more entities into one, often with the goal of synergy or efficiency improvement.

Sell

The act of exchanging a product or service for money or other forms of consideration.