Which of the following qualified plan distributions are subject to a 10% early withdrawal penalty in 2023?Garrett, age 56, currently employed by UBEIT Corporation, takes a $125,000 distribution from the UBEIT 401(k) plan.Brad, age 60, takes a $1,000,000 distribution from his employer’s profit-sharing plan. Ten days after receiving the $800,000 check (reduced for 20% withholding), Brad deposited the $800,000 into a new IRA account.Patricia, age 22, withdraws $2,000 of her contributions from her 401(k). A.3 only. B.1 only. C.2 and 3. D.1 and 3.

An early withdrawal penalty levied by the IRS is imposed on account holders who take money out of…

Answered: Which of the following qualified plan…

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which of the following qualified plan distributions are subject to a 10% early withdrawal penalty in 2023?

Garrett, age 56, currently employed by UBEIT Corporation, takes a $125,000 distribution from the UBEIT 401(k) plan.
Brad, age 60, takes a $1,000,000 distribution from his employer’s profit-sharing plan. Ten days after receiving the $800,000 check (reduced for 20% withholding), Brad deposited the $800,000 into a new IRA account.
Patricia, age 22, withdraws $2,000 of her contributions from her 401(k).