$376.00
A client turned age 72 on October 1, 2021 and must receive a minimum distribution from his IRA account, which had a value (at the end of the prior year) of $48,000. His spouse, age 63, is the beneficiary of the IRA account. The life expectancy according to IRS tables for ages 72 and 73 use the factors of 25.6 and 24.7 respectively. If the client takes a $1,000 distribution by April 1, 2022 what will be the tax penalty, if any, on the first RMD?
$0
$376.00
$437.50
$416.00
Please fallow the answer below
In the above given option no answer is matches ...please see the answer below
Answer:
Here in the question A client turned age 72 years Because the client is age 72 and half year at the end of this year, the required minimum distribution for the client is $1943.31($48000÷24.7)
Because the client only took a distribution of $1000, the minimum distribution penalty would apply to the $943.31 shortfall.
Therefore, the minimum distribution penalty is $472 (50% of the $943.31 shortfall)
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