Sally, who turned age 72 this year, owns 12% of Apex Company. She has accumulated $5 million in her qualified plan account as of December 31 of the previous year and $5.5 million as of December 31 of the current year. Distribution period for age 72 is 25.6. 

a. Calculate Sally RMD for the current tax year (show step-be-step calculation) 

b. If Sally receives a distribution of $150,000 during the current year, calculate her income tax penalty when she files her income tax return for the current year 

c. If Sally takes her required distribution by April 1 of the next year, she will not be required to take any other distribution next year. Is this a correct statement? Why or why not

Answer rating: 100% (QA)

ANSWER a RMD for the current tax year 5000000 256 1953125 ANSWER B P... View the full answer