Mit, who turned 70 1/2 on June 10th of 2019, owns 32% of Big Company and is its current CEO. he has amassed $15 million in his qualified plan account as of December 31 of 2018 and $17 million as of December 31 of 2019. He has named his grandson Collin (age 9 at the end of 2019) as his beneficiary.

Assume that the market crashes in 2020 and the value of the qualified plan drops to $1 million. As a result of the market dropped, Mit dies in September 2020 and Colin inherits the IRA. If the value of the IRA is $1 million at the end of 2020, $1.2 million at the end of 2021, and $1.5 million at the end of 2022, how much, if any, must Colin take out to satisfy the minimum distributions in years 2020, 2021, and 2022 (use the life expectancy table in effect prior to 2021 for all years)?

Answer rating: 100% (QA)

As per the IRS FAQ on Required minimum distribution for the year in which plan ... View the full answer