When a Taxpayer Receives a Nonqualified Distribution from a Roth

question 129

True/False

When a taxpayer receives a nonqualified distribution from a Roth 401(k)account the taxpayer contributions are deemed to be distributed first. If the amount of the distribution exceeds the taxpayer contributions, the remainder is from the account earnings.

---

Definitions:

Dislocation of Joints

An injury where two bones slip out of their normal position in a joint, causing pain and loss of movement.

Abuse

Misuse or treatment of something or someone in a harmful way.

Discoloration or Bruises

Changes in skin color, typically purplish or bluish, as a result of injury causing bleeding beneath the skin.

Back, Buttocks

Areas of the human body where the spine ends and the lower limbs begin, encompassing the region of the buttocks.