Which of the following statements is true regarding distributions from Roth 401(k) accounts?
A) There are no minimum distribution requirements for distributions from Roth 401(k) accounts.
B) Qualified distributions are subject to taxation.
C) A taxpayer receiving a nonqualified distribution from a Roth 401(k) account may be taxed on a portion but not all of the distribution.
D) None of the choices is a true statement.

Question

Quizplus · Accepted Answer

A portion of nonqualified distributions is generally taxable and a portion is generally nontaxable. The nontaxable portion is determined by the ratio of contributions to the total value of the account.

Which of the Following Statements Is True Regarding Distributions from Roth