Financial Planner

Answer: C - Lump sum options exist in money purchase plans and target benefit plans. There must four conditions to satisfy the lump sum distributions: 1) must be distributed in one taxable year 2) must represent the full account balance to the participant’s credit from all qualified plans of a single type 3)59 ½ years of age, death, separation from services or disability 4) must be from a qualified plan of either a money purchase plan or target benefit plan.