Question
Mary, who turned age 72 this year, owns 12% of Apex Company. She has accumulated $5 million in her qualified plan account as of December
Mary, who turned age 72 this year, owns 12% of Apex Company. She has accumulated $5 million in her qualified plan account as of December 31 of the previous year and $5.5 million as of December 31 of the current year. Distribution period for age 72 is 25.6. a.Calculate Mary's RMD for the current tax year (show step-be-step calculation) b.If Mary receives a distribution of $150,000 during the current year, calculate her income tax penalty when she files her income tax return for the current year c.If Mary takes her required distribution by April 1 of the next year, she will not be required to take any other distribution next year. Is this a correct statement? Why or why not?
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