Question
Tim has worked for one employer his entire career. While he was working, he participated in the employers defined contribution plan [traditional 401(k)]. At the
Tim has worked for one employer his entire career. While he was working, he participated in the employers defined contribution plan [traditional 401(k)]. At the end of 2020, Tim retires. The balance in his defined contribution plan is $2,000,000 at the end of 2019. (Use Exhibit 13-3.) (Leave no answer blank. Enter zero if applicable.)
EXHIBIT 13-3 Abbreviated Uniform Lifetime Table
Age of Participant | Distribution Period | Applicable Percentage* |
---|---|---|
70 | 27.4 | 3.65% |
71 | 26.5 | 3.77 |
72 | 25.6 | 3.91 |
73 | 24.7 | 4.05 |
74 | 23.8 | 4.20 |
75 | 22.9 | 4.37 |
76 | 22.0 | 4.54 |
77 | 21.2 | 4.72 |
*The applicable percentage is calculated by dividing 1 by the relevant distribution period. Source: See Reg. 1.401(a)(9)-9.
a. What is Tims required minimum distribution for 2020 that must be distributed in 2021 if he is 68 years old at the end of 2020?
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