Alex is 31 years old and has lived in Los Alamos, New Mexico, for the last four years, where he works at the Los Alamos National Laboratory (LANL). LANL provides employees with a 401(k) plan, and for every $1 an employee contributes (up to 9 percent of the employee's salary), LANL contributes $3 (a 3-to-1 match). The plan provides a six-year graded vesting schedule. Alex is now in his fifth year working for LANL, and his current-year salary is $190,000. Alex's marginal tax rate is 24 percent in 2023.

Answer the following questions relating to Alex's retirement savings in 2023. (Use Exhibit 13-2, Exhibit 13-3.)

Required:

e. Assume that Alex is 74 years old at the end of the year and retired. Further, assume his marginal tax rate is 24 percent. His account balance in his traditional 401(k) was $1,250,000 at the end of last year. What is the minimum distribution Alex must receive from his 401(k) account for this year? If Alex receives a $43,000 distribution from his 401(k) account (his only distribution during the year), what amount will he be able to keep after taxes and penalties (if any)?