A client must receive a minimum distribution from his IRA account. The value of the account at the beginning of the current year was $53,000. His spouse, age 63, is the beneficiary of the IRA account. The applicable divisor for his distribution is 25.6

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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A client must receive a minimum distribution from his IRA account. The value of the account at the beginning of the current year was $53,000. His spouse, age 63, is the beneficiary of the IRA account. The applicable divisor for his distribution is 25.6. If the client takes a $1,000 distribution, what is the tax penalty, if any?

$0

$100

$150

$535

Expert Solution
Step 1

The value of the account at the beginning of the current year =$53,000.

His spouse, age = 63

 The applicable divisor for his distribution = 25.6.

the client takes money =$1000

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