Multiple Choice $9-29$

Qualified Retirement Plans $($LO $9\mathrm{.}8)$

Greta and her employer have both been making contributions to a qualified retirement plan for the last $25$ years. Greta is looking forward to her retirement in a few more years and is extremely pleased to see a balance in her retirement account of $$480,000$ at the start of $2023.$ During $2023,$ the account earned interest, dlvidends, and capital gains and is now worth $$500,000.$ Greta takes no distributions from the plan in $2023.$ What is the treatment of the $$20,000$ increase in Greta's retirement account?

a$.$ The interest and dividends are taxable in $2023$ but the capital gains, both realized and unrealized, are not taxable in $2023.$

b$.$ None of the increase is taxable in $2023.$

xOc. The interest, dividends, and realized capital gains $($but not losses$)$ are taxable in $2023.$

d$.$ Only the unrealized capital gains and losses are taxable $($if a net increase$)$ in $2023.$ The other forms of income are not taxable in $2023.$