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

Question:

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 2015, Kim retires and the balance in her defined contribution plan was $2,000,000 at the end of 2014.
a) What is Kim's minimum required distribution for 2015 in 2016 if she is 68 years old at the end of 2015?
b) What is Kim's minimum required distribution for 2015 if she turns 70½ during 2015 and she has not turned 71 years old by the end of 2015? When must she receive this distribution?
c)
What is Kim's minimum required distribution for 2015 in 2016 if she is 73 years old at the end of 2015?
d) Assuming that Kim is 75 years old at the end of 2015 and that her marginal tax rate in 2015 is 33 percent, what will she have remaining after taxes if she receives only a distribution of $50,000 for 2015?
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...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Taxation Of Individuals And Business Entities 2016

ISBN: 9781259334870

7th Edition

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

Question Posted: