If an employee’s benefit is paid from a qualified plan in the form of a qualifying lump-sum benefit at retirement, the e

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If an employee’s benefit is paid from a qualified plan in theform of a qualifying lump-sum benefit at retirement, the employee’scost basis will be recovered _______________
A. with an income tax penalty.
B. with an income tax reduction.
C. free of income tax.
D. none of these.
It is not A.