QUESTION 41 Parker has a traditional IRA. How could distributions from his traditional IRA be taxed? O As capital gains. As ordinary income. O As return of basis. O Two of the above. QUESTION 42 A person, age 78, is confined to a custodial nursing home. Which of the following programs is / are likely to pay benefits towards the cost of the nursing home? -1-Medicare may pay for up to 100 days of care after a 20-day deductible. -2-Long-term care insurance may pay part if coverage of the facility type is broad enough. 3-Private medical insurance may pay part if it is a comprehensive major medical policy. 4-Medicaid may pay if the client has income and assets below state thresholds 4 only O 1 and 3. O 2 and 4. 1,2, and 3. QUESTION 43 Many workers considering Social Security benefits are faced with the decision to retire early, on time, or late. Which of the following is incorrect regarding this decision? Workers can take early retirement Social Security benefits as early as age 62. or permanent, depending on the file and suspend option selected. 5/9 of one percent for up to the first 36 months. O If a worker begins Social Security benefits prior to full retirement age, the reduction in benefits is temporary O For each month of early retirement, workers will receive a reduction in their monthly retirement benefit of workers who take late retirement may have an annual increase for each year of late retirement between 396 to 896