Which of the Following Best Describes Distributions from a Traditional

question 48

Multiple Choice

Which of the following best describes distributions from a traditional defined contribution plan?

• A)Distributions from defined contribution plans are fully taxable as ordinary income.
• B)Distributions from defined contribution plans are partially taxable as ordinary income and partially nontaxable as a return of capital.
• C)Distributions from defined contribution plans are fully taxable as capital gains.
• D)Distributions from defined contribution plans are partially taxable as capital gains and partially nontaxable as a return of capital.The full amount of distributions from defined contribution plans is taxable as ordinary income.

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Definitions:

Band Society

A small, loosely organized group of hunter-gatherers who work together and share resources, usually consisting of 20-50 individuals.

State Society

A complex social organization characterized by a formal governmental structure and socioeconomic stratification.

Cultural Controls

Means of ensuring that individuals or groups conduct themselves in ways that support and maintain the established cultural order. They may be internal (ingrained sentiments about what is proper and what is not) or external (such as sanctions).

Leader of the Band

A term metaphorically used to describe the person who provides direction and guidance to a group or team, much like a conductor in a musical band.