SIE Exam Question 829: Answer and Explanation

Question: 829

Distributions from a 401(k) plan following separation from service after age __________ are not subject to the __________ premature distribution penalty.

• A. 50, 10%
• B. 50, 15%
• C. 55, 10%
• D. 55, 15%

Correct Answer: C

Explanation:

Distributions from a 401(k) plan following separation from service after age 55 are not subject to the 10% premature distribution penalty.