beth\'s employer maintains a pension plan and a profit sharing plan. in the curr

Question

beth's employer maintains a pension plan and a profit sharing plan. in the current year beth seperates from the company and receives a total distribution from both plans. beth was born in 1930 and had participated in both plans for the last 20 years. what tax method or methods are available to beth for the distributions received fro,m both plans?

a. capital gain (flat 20%) treatment for both plans

b. ordiniary income only for the pension plan, ordinary income only for the profit sharing pland

c. ordinary income only for the pension plan: TYA only for the profit sharing plan

d. TYA only for the pension plan, ordinary income only for the profit aharing plan

Explanation / Answer

Assuming Beth is older than 55:

Answer is
d. TYA only for the pension plan, ordinary income only for the profit aharing plan

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