Kim has worked for one employer her entire career. While she was working, she participated in the

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Kim has worked for one employer her entire career. While she was working, she participated in the employer's defined contribution plan [traditional 401(k)].At the end of 2016, Kim retires and the balance in her defined contribution plan was $2,000,000 at the end of 2015.

a. What is Kim's minimum required distribution for 2016 in 2017if she is 68 years old at the end of 2017?

b. What is Kim's minimum required distribution for 2016 if she turns 70½ during 2016 and she has not turned 71 years old by the end of the 2016? When must she receive this distribution?

c. What is Kim's minimum required distribution for2016 in 2017if she is 73 years old at the end of 2016?

d. Assuming that Kim is 75 years old at the end of 2016 and that her marginal tax rate is 33 percent, what amount of her distribution will she have remaining after taxes if she receives only a distribution of $50,000 for 2016?

e. Complete Form 5329, page 2 to report the minimum distribution penalty in part d. Use the most recent form available.

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Taxation Of Individuals 2017

ISBN: 9781259548666

8th Edition

Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

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