Barbara has worked for one employer her entire career. While she was working, she participated in the employer’s defined contribution plan [traditional 401(k)]. At the end of 2020, Barbara retires. The balance in her defined contribution plan is $4,000,000 at the end of 2019. Use the below provide abbreviated uniform lifetime table to answer the questions. a. What is Barbara’s required minimum distribution for 2020 that must be distributed in 2021 if she is 68 years old at the end of 2020? b. What is Barbara’s required minimum distribution for 2020 if she turns 72 during 2020? When must she receive this distribution? c. What is Barbara’s required minimum distribution for 2020 that must be distributed in 2021 if she turns 75 years old in 2020? d. Assuming that Barbara is 76 years old at the end of 2020 and her marginal tax rate is 32 percent, what amount of her distribution will she have remaining after taxes if she receives only a distribution of $50,000 for 2020? ABBREVIATED UNIFORM LIFETIME TABLE Age of Participant Distribution Period Applicable Percentage 70 27.4 3.65% 71 26.5 3.77 72 25.6 3.91 73 24.7 4.05 74 23.8 4.2 75 22.9 4.37 76 22.0 4.54 77 21.2 4.72
Barbara has worked for one employer her entire career. While she was working, she participated in the employer’s defined contribution plan [traditional 401(k)]. At the end of 2020, Barbara retires. The balance in her defined contribution plan is $4,000,000 at the end of 2019. Use the below provide abbreviated uniform lifetime table to answer the questions.
a. What is Barbara’s required minimum distribution for 2020 that must be distributed in 2021 if she is 68 years old at the end of 2020?
b. What is Barbara’s required minimum distribution for 2020 if she turns 72 during 2020? When must she receive this distribution?
c. What is Barbara’s required minimum distribution for 2020 that must be distributed in 2021 if she turns 75 years old in 2020?
d. Assuming that Barbara is 76 years old at the end of 2020 and her marginal tax rate is 32 percent, what amount of her distribution will she have remaining after taxes if she receives only a distribution of $50,000 for 2020?
| ABBREVIATED UNIFORM LIFETIME TABLE | ||
| Age of Participant | Distribution Period | Applicable Percentage |
| 70 | 27.4 | 3.65% |
| 71 | 26.5 | 3.77 |
| 72 | 25.6 | 3.91 |
| 73 | 24.7 | 4.05 |
| 74 | 23.8 | 4.2 |
| 75 | 22.9 | 4.37 |
| 76 | 22.0 | 4.54 |
| 77 | 21.2 | 4.72 |
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