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If an Individual Makes a Withdrawal Prior to the Attainment

Question 40

Multiple Choice

If an individual makes a withdrawal prior to the attainment of the age of 59½ from an IRA:


A) It is subject to a 10 percent penalty
B) The taxable amount is subject to a 10 percent penalty
C) The nontaxable amount is subject to a 10 percent penalty
D) The nontaxable amount withdrawn is subject to a 10 percent penalty
E) The entire plan amount becomes taxable but the penalty is waived

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