SIE Exam Question 1001: Answer and Explanation

Question: 1001

Which of the following is the penalty for a premature distribution from a qualified plan, 403(b) plan, IRA, or SEP?

• A. 5%
• B. 10%
• C. 15%
• D. Ordinary income tax rates

Correct Answer: B

Explanation:

There is a 10% penalty on premature distributions from a qualified plan, 403(b) plan, IRA, or SEP.