A client aged 58 takes a distribution from her 401(k) after separating from service. She is subject to which early distribution rules?
-
A
10% penalty applies because she is under 59½
-
B
No penalty because of the age-55 separation-from-service exception
-
C
No penalty because she is within 2 years of age 60
-
D
50% excise tax applies to the distribution