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
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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
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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