Tim has worked for one employer his entire career. While he was working, he participated in the employer's 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 table below.

. Assuming that Tim is 76 years old at the end of 2020 and his marginal tax rate is 32 percent, what amount of his distribution will he have remaining after taxes if he receives only a distribution of $50,000 for 2020?

 

EXHIBIT 13-3 Abbreviated Uniform Lifetime Table Age of Participant Distribution Applicable Period 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.