Retirement Income Taxation Exam Question 2 of 25 Select the best answer John res

Question

Retirement Income Taxation Exam Question 2 of 25 Select the best answer John resigned from his job and became an independent contractor. His previous employer is one o customers, and the duties he now performs for the former employer are substantially the same as before he resigned. He has received a distribution from his employer's retirement plan. If he claim distribution qualifies as an LSD, which of the following is least likely to concern the IRS? A. Whether he has satisfied the separation-from-service rule B. Whether he has satisfied the severance-of-employment ruies C Whether he is doing essentially the same job he did when he was employed D. Whether the distribution was from a qualified plan

Explanation / Answer

Answer: C whether he is doing essentially the same job he did when he was employed

Lump sum distributions (LSD) is the amount received from the employee from various plans for which he/she qualifies after meeting the criteria set by such plans. It doesnt matter if he is self employed doing the same job when her was employed or not for the tax authorities.

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