Which of the following statements is true regarding taxpayers receiving distributions from traditional defined contribution plans?
A. A taxpayer who retires at age 71 in 2015 is required to pay a minimum distribution penalty if she does not receive a distribution in 2015.
B. The minimum distribution penalty is 30% of the amount required to have been distributed.
C. A taxpayer who receives a distribution from a retirement account before she is 55 years old is subject to a 10% penalty on both the distributed and undistributed portions of her retirement account.
D. Taxpayers are not allowed to deduct either early distribution penalties or minimum distribution penalties.
Answer: D