Distributions from a retirement plan are not subject to a 10% additional tax in each of the following instances except when
A. The distribution is used to pay for medical expenses above the 7.5% AGI threshold.
B. The distribution is made to pay an IRS tax levy on the plan.
C. The distribution is paid to an employee to be used to pay health insurance premiums, which are not a portion of the taxpayers medical expenses above the 7.5% AGI threshold.
D. The distribution is made to an employee or retiree on or after age 59½.
Answer: C
You might also like to view...
Held-to-maturity securities
a. are reported at fair market value b. include stocks as well as bonds c. may be reported as current or noncurrent assets d. all of these
The effect of capital expenditures on the master budget is reflected through cash payments made for acquisition of capital assets
Indicate whether the statement is true or false
Supervisor salaries, maintenance, and indirect factory wages would normally appear in the operating expenses budget
Indicate whether the statement is true or false
[The following information applies to the questions displayed below.]Packard Company engaged in the following transactions during Year 1, its first year of operations: (Assume all transactions are cash transactions.)1) Acquired $950 cash from the issue of common stock. 2) Borrowed $420 from a bank. 3) Earned $650 of revenues. 4) Paid expenses of $250. 5) Paid a $50 dividend. During Year 2, Packard engaged in the following transactions: (Assume all transactions are cash transactions.)1) Issued an additional $325 of common stock. 2) Repaid $220 of its debt to the bank. 3) Earned revenues of $750. 4) Incurred expenses of $360. 5) Paid dividends of $100. What is Packard Company's net cash flow from financing activities for Year 2?
A. $220 outflow B. $5 inflow C. $320 outflow D. $225 inflow