QUESTION 14 Mary, who turned 90 last December, decided to retire and takes a lump sum cash distribution of $600,000 fror er former employer's profit sharing plan during the current year. Mary had worked for the employer since 1969. Which of the following taxation options are available for Mary in the year of this distribution? 1-Ten-year forward averaging. 2-Pre-74 capital gain treatment. 3-Net unrealized appreciation. eed averaging. 1 and 4. O 1 and 2. O 1, 2, and 3. O 2,3, and 4. QUESTION 15 When do separate accounts have to be established for multiple beneficiaries of an IRA after the death of the IRA owner? April 1 of the year of death. December 31 of the year of death. December 31 of the year after death. Within 12 months after death. QUESTION 16 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. O 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