Which of the following statements about withdrawals from Section 401(k)plans is (are)true?
I.The penalty tax does not apply to hardship withdrawals.
II.Withdrawals may be made without penalty at age 59.5 or older.

Question

Quizplus · Accepted Answer

Statement II is true. Withdrawals from a 401(k) plan may be made without penalty once the account holder reaches age 59.5.

Statement I is false. Hardship withdrawals from a 401(k) plan are subject to a penalty tax of 10% if the account holder is under age 59.5.

Which of the Following Statements About Withdrawals from Section 401(k)plans