Which of the following is false regarding taxation of distributions from qualified plans?

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Which of the following is false regarding taxation of distributions from qualified plans?

a. Benefits are taxable as income upon withdrawal from the account.

b. Distributions prior to 62 are subject to an additional 10% IRS penalty.

c. Plan loans and rollovers are considered withdrawals, but are not subject to the 10% IRS penalty.

d. If the plan participant becomes disabled, he or she may make early withdrawals that are subject to tax, but not the 10% IRS penalty.

Answer: b. Distributions prior to 62 are subject to an additional 10% IRS penalty.

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