Question $17(4$ points$)$

Jerry, who is age $56,$ was just called Into the president's office at Napa Sunrise, Inc.

He just learned that his position has been eliminated in the recent reorganization While he la devastated, he thinks he may attempt to retire and work on his golf game Jerry has a retirement plan a Napa Sunrise, which permits lump$-$sum distributions, and has accumulated some personal savings, but not enough to sustain him until age $65.$ Jerry also worked for KMA for $30$ years and expects to recelve a pension frora KMA at age $65.$ He also expects to recelve Social Secialty at age $67.$

Which of the following is correct?

a$)$ jerry cannot access his funds at Napa Sunrise prior to full retirement age for frie plan,

$5$:

b$)$ Jerry could take a distribution from Napa Sunrise, but it will be subject to ordinary income and subjeci te an early withdrawal penaly prior to the age $0$f $59\%.$

$$

c$)$ Jerry could begin taking substantlally equal periesle payments, which would avoid the early withdrawal penalty, but he could not stop the payments until age $59(1)/(2)2.$

$7$

c $$:

cO Jerry can take any distribution permitted by the Napa Sunrise plan and avoid the early withdrawal penalty since he is separating from service at age $56.$