Which of the Following Statements Is True Regarding Taxpayers Receiving

question 104

Multiple Choice

Which of the following statements is true regarding taxpayers receiving distributions from traditional defined contribution plans?

• A) A taxpayer who retires at age 71 in 2018 is required to pay a minimum distribution penalty if she does not receive a distribution in 2018.
• B) The minimum distribution penalty is 30% of the amount required to have been distributed.
• C) A taxpayer who receives a distribution from a retirement account before she is 55 years old is subject to a 10% penalty on both the distributed and undistributed portions of her retirement account.
• D) Taxpayers are not allowed to deduct either early distribution penalties or minimum distribution penalties.

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Definitions:

Nomothetic Approach

A methodological approach focusing on identifying general laws that apply to all individuals within a population.

Multiply Determined

Refers to phenomena or outcomes that result from several contributing factors rather than from a single cause.

Government Regulation

Rules or directives established by authorities designed to control or govern conduct within a particular domain.

Organizations

Entities formed for a specific purpose, comprising of individuals working together under a defined structure to achieve common goals.