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 2020, Tim retires. The balance in his defined contribution plan is $2,000,000 at the end of 2019.

a. What is Tim’s required minimum distribution for 2020 that must be distributed in 2021 if he is 68 years old at the end of 2020?

b. What is Tim’s required minimum distribution for 2020 if he turns 72 during 2020? When must he receive this distribution?

c. What is Tim’s required minimum distribution for 2020 that must be distributed in 2021 if he turns 75 years old in 2020?

d. Assuming that Tim is 76 years old at the end of 2020 and his marginal tax rate is 32 percent, what amount of his distribution will he have remaining after taxes if he receives only a distribution of $50,000 for 2020?

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