Distribution Period for Lifetime Distributions to an Employee Assignment

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Narpvn22

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Description

Amy participates in a 401(k ) plan through her employer, but does not plan on retiring anytime soon. She is 70 years old on the last day of this year, which means she is subject to mandatory minimum distribution rules on April 1 of the following year. If her qualified account balance as of the end of last year was $500,000 what will the minimum distribution she has to take from her 401(k) plan (round to the nearest dollar)?
Note: Use the IRS Distribution Table on p. 688 of the text

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Explanation & Answer

Attached.

Amy's Age
Amy's Qualified Account Balance
IRS Distribution Period
Amy's Minimum Distribution

70
71
72
73
74
$500,000 $481,752 $463,573 $445,464 $427,429
27.4
26.5
25.6
24.7
23.8
$18,248 $18,179 $18,108 $18,035 $17,959

Assumption: These calculations run from 70 to 90 years.
Since Amy intends to continue working after 70 years, the "Still Working" exception will take effect. However, ther
a) Amy can delay her distributions from her 401 (k) until April 1st of the year following the year she retires regardle
reason, the excel sheet has calculations ranging fro...

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