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Shauna Received a $100,000 Distribution from Her 401(k) Account This

Question 93

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Shauna received a $100,000 distribution from her 401(k) account this year.Assuming Shauna's marginal tax rate is 25%,what is the total amount of tax and penalty Shauna will be required to pay if she receives the distribution on her 59th birthday and she has not yet retired?


A) $0.
B) $10,000.
C) $25,000.
D) $35,000.
E) None of thesE.She must pay $25,000 of income tax on the distribution and a 10% early distribution penalty because she was not 59½ on the date of the distribution and she had not yet retired.

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