Select the best answer. Elaina (aged 80) expects to receive a $200,000 LSD from

Question

Select the best answer. Elaina (aged 80) expects to receive a $200,000 LSD from her employer's qualified plan in 2017 when she retires. Assume that the distribution qualifies as an LSD and no portion qualifies for the capital g mentioned in the introduction to this section. What tax method(s) from the following list will be available to Elaina for taxing the distribution? ain treatment Elaina can treat the (TYA). A. distribution amount as ordinary income or use 10-year forward averaging Elaina must treat the distribution amount as ordinary income because she does not qualfty for TYA B. Elaina must treat the distribution amount as TYA because she was born before 1936 and, as such, she cannot treat the distribution as ordinary income. C. c D. Elaina can use the MDA exclusion

Explanation / Answer

Answer :- Option A). Elaina can treat the distribution amount as ordinary income or use 10-year forward averaging (TYA).

Conclusion :- Option A).

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