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Jason Just Quit His Current Job

Question 154

Multiple Choice

Jason just quit his current job.He has $13,000 vested in that 401(k) plan.Which of the following is true?


A) If Jason takes the money and spends it,he will have to pay taxes and penalties on all $13,000.
B) If Jason takes the money and reinvests it in an IRA,the employer will write him a check for $13,000.
C) If Jason arranges a transfer of funds from his employer directly to his IRA trustee,his employer will withhold 20%.
D) a and b
E) a,b,and c

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