Which of the following statements is correct with respect to the aggregation rul

Question

Which of the following statements is correct with respect to the aggregation rules?

A. A trust described in IRC Section 401(a) is not subject to the first aggregation rule. B. All stock bonus plans and profit-sharing plans of one employer are treated as a single plan under the first aggregation rule. C. If an employee receives a lump-sum distribution from each of two employers during the year, one LSD can use TYA and the other can be reported as ordinary income on page 1 of Form 1040. D. The first aggregation rule is used to determine whether a distribution qualifies for LSD treatment.

Explanation / Answer

Oprion C is correct

If an employee receives a lump sum distribution from each of the two employers during the year, one LSD can ise TYA and the other can be reported as ordinary income on page 1 of Form 1040

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