If the Proceeds of a Pension Plan Are Being Distributed

question 66

Multiple Choice

If the proceeds of a pension plan are being distributed and the original beneficiary dies:

• A)The person who inherits the plan assets can elect to be treated as the original beneficiary if that person is the spouse of the original beneficiary.
• B)The balance of the pension plan assets must be distributed in the year of death.
• C)The person who inherits the plan assets can elect to be treated as the original beneficiary if that person is unrelated to the original beneficiary.
• D)The person who inherits the plan assets will receive the remaining plan assets tax-free.