An employee quits her job where she has a balance of $10,000 in her qualified plan. If she decides to do a direct transfer from her plan to a Traditional IRA, how much will be transferred from one plan administrator to another and what is the tax consequence of a direct transfer

An employee quits her job where she has a balance of $10,000 in her qualified plan. If she decides to do a direct transfer from her plan to a Traditional IRA, how much will be transferred from one plan administrator to another and what is the tax consequence of a direct transfer


A) $10,000, no tax consequence

B) $8,000, no tax consequence

C) $8,000, tax on growth only

D) $10,000, tax on growth only



Answer: $10,000, no tax consequence

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