Fundamentals of Taxation 2011 4th Edition by Ana Cruz, Debra Prendergast, Dan Schisler, Michael Deschamps

Exercise 36

Terrance is age 71 and retired. Beginning in 2010, he must start taking minimum distributions from his IRA account that had a balance of $150,000 as of December 31, 2009. Make these three assumptions: his IRA will earn 8% per year; he will withdraw the minimum distribution on the last day of each calendar year, and only one distribution will be taken in 2010. Calculate the amount of his distribution for years 2010 through 2014 and the ending balance in his IRA account on December 31, 2014.