Which of the following statements is true regarding taxpayers receiving distributions from traditional defined contribution plans?
A) A taxpayer who retires at age 71 in 2014 is required to pay a minimum distribution penalty if she does not receive a distribution in 2014.
B) The minimum distribution penalty is 30% of the amount required to have been distributed.
C) A taxpayer who receives a distribution from a retirement account before she is 55 years old is subject to a 10% penalty on both the distributed and undistributed portions of her retirement account.
D) Taxpayers are not allowed to deduct either early distribution penalties or minimum distribution penalties.

Question

Quizplus · Accepted Answer

Taxpayers cannot deduct penalties for early distributions or for failing to take required minimum distributions from their taxable income.

Which of the Following Statements Is True Regarding Taxpayers Receiving