Question

A Which of the following best describes distributions from a defined benefit plan?

A. Distributions from defined benefit plans are taxable as ordinary income. B. Distributions from defined benefit plans are partially taxable as ordinary income and partially nontaxable as a return of capital. C. Distributions from defined benefit plans are taxable as capital gains.

Answer 1

Answer:B. Distributions from defined benefit plans are partially taxable as ordinary income and partially nontaxable as a return of capital.

Step-by-step explanation: