During the Current Year, Taxpayer Q Quits Her Job

During the current year, Taxpayer Q quits her job.As a participant in her employer's qualified retirement plan, Q is entitled to a payment of $100,000.Q never made any contributions of her own to this plan.Based on these facts, which of the following statements is incorrect?

A) If Q decides to take her $100,000 in the form of a yearly annuity for life, the full amount of the annual payment received must be included in her gross income.
B) If Q is age 61 in the current year and decides to take her $100,000 in the form of a lump sum distribution, she may elect to pay the tax on the distribution over a five-year period.
C) If Q decides to take her $100,000 in the form of a lump sum distribution, she may roll the amount over into an IRA and avoid paying any current tax on the distribution.
D) If Q is age 40 in the current year, she will pay a 10 percent penalty tax on any amount of the distribution included in her gross income for the year.