Kim 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 2015, Kim retires and the balance in her defined contribution plan was $2,000,000 at the end of 2014.
a) What is Kim's minimum required distribution for 2015 in 2016 if she is 68 years old at the end of 2015?
b) What is Kim's minimum required distribution for 2015 if she turns 70½ during 2015 and she has not turned 71 years old by the end of 2015? When must she receive this distribution?
c) What is Kim's minimum required distribution for 2015 in 2016 if she is 73 years old at the end of 2015?
d) Assuming that Kim is 75 years old at the end of 2015 and that her marginal tax rate in 2015 is 33 percent, what will she have remaining after taxes if she receives only a distribution of $50,000 for 2015?
e) Complete Form 5329, page 2, to report the minimum distribution penalty in part (d). Use the most recent form available.