Greta and Greta’s employer have both been making contributions to a qualified retirement plan for the last twenty-five years. Greta is looking forward to her retirement in a few more years and is extremely pleased to see a balance in her retirement account of $480,000 at the start of 2022. During 2022, the account earned interest, dividends, and capital gains and is now worth $500,000. Greta takes no distributions from the plan in 2022. What is the treatment of the $20,000 increase in Greta’s retirement account?

a. The interest, dividends, and realized capital gains (but not losses) are taxable in 2022.

b. None of the increase is taxable in 2022.

c. The interest and dividends are taxable in 2022 but the capital gains, both realized and unrealized, are not taxable in 2022.

d. Only the unrealized capital gains and losses are taxable (if a net increase) in 2022. The other forms of income are not taxable in 2022.