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Which of the Following Statements Is True

Question 70

Multiple Choice

Which of the following statements is true?


A) A distribution rollover from a retirement plan can only be done as a direct transfer from one account to another account.
B) The trustee must withhold 10 percent of the amount distributed whenever assets are transferred from one retirement plan to another retirement plan.
C) If a taxpayer decides to rollover an IRA to a new account, then the whole IRA must be rolled over.
D) A taxpayer is allowed only one direct transfer each year from one retirement account to another retirement account.
E) There are no current-year tax consequences for a direct transfer.

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