Wan-Ying, Age 64, Retired from the Meadowbrook Corporation During the Current

question 70

Multiple Choice

Wan-Ying, age 64, retired from the Meadowbrook Corporation during the current year. Wan-Ying's defined contribution profit sharing plan is valued at $300,000 at her retirement date. Which of the following are correct statements?
I.Beginning on April 1 of the following tax year, Wan-Ying must receive either a lump sum distribution from her pension plan or begin to receive an annuity distribution.
II.By electing to receive a lump-sum distribution at the date of her retirement, Wan-Ying can wait 5 years before receiving the lump sum distribution.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Greater Than

A mathematical term used to compare two values where one is larger than the other, often denoted by the symbol '>'.

Z-scores

Standardized scores that measure the distance of a data point from the mean, expressed in units of standard deviation.

Standard Normal Distribution

A normal distribution with a mean of zero and a standard deviation of one.

Less Than

A mathematical term indicating that one quantity or number is smaller than another.