Jerry, who was age 56, had just been called into the President's office at Napa Sunrise, Inc. and learned that his position has been eliminated in the recent reorganization. Unfortunately, he was devastated and was hit by a city bus while crossing the street in front of his office. He named his son, Tom, as his beneficiary. Tom just turned 20 years old and is in college at Loyola University, in New Orleans. Jerry's account balance at the time of his death was $500,000. Which of the following is NOT correct? 

 Tom can take out 50 percent of the value of the account the first year after death.

 Tom's only choice for complying with the minimum distribution rules is to take out the entire balance over a five-year period.

 Even if Tom does not take out a distribution within the first two years, he will not be subject to a penalty.

 Tom could take distributions over his life expectancy, as determined from the single life table.