Which of the following best describes distributions from a traditional defined contribution plan?

A. Distributions from defined contribution plans are fully taxable to the recipient as long-term capital gains.
B. Distributions from defined contribution plans are partially taxable to the recipient as capital gains and partially nontaxable as a return of capital.
C. Distributions from defined contribution plans are partially taxable to the recipient as ordinary income and partially nontaxable as a return of capital.
D. Distributions from defined contribution plans are fully taxable to the recipient as ordinary income.


Answer: D

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