Leo uses the simplified method to determine the taxable amount of his pension. Which of the following statements is true: The tax-free portion of Leo's distribution is determined using his age and the age of any survivor beneficiary as of December 31 of the tax year, without regard to the pension starting date. The tax-free part of the payment will remain the same each year, even if the amount of the distribution changes. The tax-free portion of Leo's distribution is determined using the account FMV as of December 31 of the previous tax year. At any time, Leo may switch to the General Rule to determine the taxable amount of his distribution.