The Internal Revenue Code Limits Deferral by Requiring That Minimum

question 7

Multiple Choice

The Internal Revenue Code limits deferral by requiring that minimum distribution must begin for the calendar year in which the

• A) Age of 65 is attained
• B) Age of 70 is attained
• C) Age of 70½ is attained and be paid no later than December 1 of the same year
• D) Age of 70½ is attained and be paid no later than April 15 of the following year
• E) Age of 70½ is attained and be paid no later than April 1 of the following year

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Definitions:

Coupon Bond

A type of bond that offers the holder periodic interest payments, with the principal repaid at maturity.

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures.

Semi-Annually

Occurring twice a year, typically used in finance to describe payment intervals or adjustments.

Face Value

The nominal or dollar value printed on a bond, note, or other financial instrument, indicating its worth at maturity.