SIE Exam Practice Question 57

Question: 57

What is the tax consequence to an individual under the age of 59 ½ who withdraws a lump sum from his 401(k)?

A. The amount withdrawn is considered income and is subject to income taxes at the individual’s rate.

B. The amount that is withdrawn is considered income and is subject to income taxes at the individual’s current rate. Plus, he may be subject to a 10 percent penalty.

C. He must pay a 10 percent penalty. Otherwise, there are no tax consequences.

D. None of the above. A lump sum withdrawal from a 401(k) is not a taxable event.

SIE Exam Practice Question 57

More Tests

Quick View

FINRA Practice Tests