Which of the following statements is true regarding distributions from Roth 401(k)accounts?
A) Qualified distributions are subject to taxation.
B) A taxpayer receiving a nonqualified distribution from a Roth 401(k) account may be taxed on a portion but not all of the distribution.
C) There are no minimum distribution requirements for distributions from Roth 401(k) accounts.
D) None of the choices is a true statement.

Question

Quizplus · Accepted Answer

A nonqualified distribution from a Roth 401(k) may be partially taxable because it includes both contributions (which are not taxed) and earnings (which may be taxed if the distribution is nonqualified).

Which of the Following Statements Is True Regarding Distributions from Roth