Question
1. Chad plans on retiring in March of this year, and he and his wife would like to go to Spain for a vacation. He
1. Chad plans on retiring in March of this year, and he and his wife would like to go to Spain for a vacation. He wants to take a distribution of $20,000 from one of his retirement accounts to pay for the vacation. Which of his retirement plans would allow him to take a penalty-free withdrawal to fund his vacation?
2. If the balance in Chads Moms IRA was $120,000 at the end of last year and $140,000 at the end of this year. How much, if any, must he take out from this account to satisfy the minimum distribution rules?
3. Assuming Chad decided to take out a $20,000 distribution from his Roth IRA to pay for the vacation, what are the tax implications?
4. If Chad retires, what should he do with the CRP shares and why?
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