Karl Is Scheduled to Receive an Annuity Distribution of $10,000

question 44

Multiple Choice

Karl is scheduled to receive an annuity distribution of $10,000 from his pension plan in 2018. Due to his recent success in the stock market, he has requested that he receive only $5,000 in 2018. Because Karl will fail to receive the required annuity distribution in 2018, he is subject to a penalty of

• A)$-0-
• B)$500
• C)$1,000
• D)$2,500
• E)$5,000

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Definitions:

Cognitive Dissonance Theory

A psychological theory suggesting that individuals experience discomfort when holding two or more contradictory beliefs, attitudes, or values, leading them to attempt to reduce the dissonance.

Theory of Planned Behavior

A theory in psychology that forecasts a person's likelihood of performing a specific action at a given time and location, taking into account their attitudes, societal expectations, and their sense of control over the behavior.

Psychological Reactance

A motivational reaction to offers, persons, rules, or regulations that threaten or eliminate specific behavioral freedoms.

Resistance Effect

A phenomenon where individuals or groups oppose change or policies, often due to perceived threat to autonomy or norms.