SIE Exam Question 935: Answer and Explanation

Question: 935

Which of the following are permitted distribution options from a qualified retirement plan?

(1) Lump sum distribution

(2) Direct trustee-to-trustee transfer

(3) Payment in the form of an annuity or other periodic payment option

(4) Rollover of funds from one qualified retirement plan to another

• A. (1) and (3) only
• B. (1), (2), and (4) only
• C. (2), (3), and (4) only
• D. All of the above are correct.

Correct Answer: D

Explanation:

The permitted distribution options from a qualified retirement plan are lump sum distribution, direct trustee-to-trustee transfer, payment in the form of an annuity or other periodic payment option, and rollover of funds from one qualified retirement plan to another.