Mr Scott, age 46, quit his job with MNP Inc. and withdrew the $184,000 balance in his Section 401(k) plan. Mr Scott immediately deposited the withdrawal in a new rollover Roth IRA with a local bank. Which of the following statements is false?
A) Mr. Scott must include the $184,000 withdrawal in gross income.
B) Mr. Scott must pay a 10% premature withdrawal penalty.
C) Future withdrawals from the rollover Roth IRA will be nontaxable.
D) None of the statements is false.
Correct Answer:
Verified
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