At the end of 2015,Erin was 73 years old and her traditional IRA had a balance of $200,000.She properly withdrew $8,403 from her IRA in 2016.In 2016,her IRA assets earned $25,000.What amount must Erin take as a distribution from her IRA in 2017?

Question

Quizplus · Accepted Answer

Erin's required minimum distribution (RMD) for 2017 can be calculated as follows:

Step 1: Calculate the IRA balance as of December 31, 2016:
$200,000 (initial balance) + $25,000 (earnings) - $8,403 (2016 withdrawal) = $216,597

Step 2: Use the IRS Uniform Lifetime Table to find the distribution period for a 74-year-old (her age on December 31, 2016):
Her distribution period is 23.8 years.

Step 3: Divide the IRA balance by the distribution period to get the RMD for 2017:
$216,597 ÷ 23.8 = $9,108.82

So, Erin must take a distribution of $9,108.82 from her IRA in 2017. The closest option to this amount is B) $9,458.

At the End of 2015,Erin Was 73 Years Old and Her