Question: Tim has worked for one employer his entire career. While he was working, he participated in the employer's defined contribution plan [ traditional 4 0

 

Tim has worked for one employer his entire career. While he was working, he participated in the employer's defined contribution plan [traditional 401(k)]. At the end of 2023, Tim retires. The balance in his defined contribution plan at the end of 2022 was $2,000,000. (Use Exhibit 13-3.)

Note: Leave no answers blank. Enter zero if applicable.

EXHIBIT 13-3 Abbreviated Uniform Lifetime Table for Distributions

Age of Participant Distribution Period Applicable Percentage*

72 27.4    3.65

73 26.5 3.77

74 25.5 3.92

75 24.6 4.07

76 23.7 4.22

77 22.9 4.37

78 22.0 4.55

a. What is Tim's required minimum distribution for 2023 that must be distributed in 2024 if he is 68 years old at the end of 2023?

b-1. What is Tim's required minimum distribution for 2023 if he turns 73 during 2023?

b-2. When must he receive this distribution?

c. What is Tim's required minimum distribution for 2023 that must be distributed in 2024 if he turns 75 years old in 2023?


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