Alice participates in a qualified retirement plan at work. The plan provides Alice with life insurance. If Alice dies, which of the following statements correctly describes the income tax treatment of the life insurance death benefit paid to Alice's beneficiary?

Question 2 options:

	A.) The pure insurance element of the death benefit is income tax free to the beneficiary
	B.) The entire death benefit is income tax free to the beneficiary
	C.) The beneficiary must pay income tax plus a 10% penalty on the entire death benefit
	D.) The beneficiary must pay income tax on the entire death benefit