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At age 50, Charles began receiving payments under a distribution method that provides for substantially equal...

At age 50, Charles began receiving payments under a distribution method that provides for substantially equal payments over his life. He had no basis in the account. At age 58, after he had received distributions totaling $14,000, he elected to receive the remaining benefits in a lump-sum of $155,000. What amount of the total distribution is subject to the early penalty?

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ekkarill92 answered 1 year ago
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At age 50, Charles began receiving payments under a distribution method that provides for substantially equal...
At age 50, Charles began receiving payments under a distribution method that provides for substantially equal payments over his life. He had no basis in the account. At age 58, after he had received distributions totaling $14,000, he elected to receive the remaining benefits in a lump-sum of $155,000. What amount of the total distribution is subject to the early distribution penalty? A) $0 B) $14,000.00 C) $155,000.00 D) $169,000.00 Note: Option C) $155,000.00 is incorrect answer in my test
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