Danielle, who is retired, reaches age 70 1/2 in 2018, and she will also be age 71 in 2018.She has a $150,000 balance in her traditional IRA.If her life expectancy is 15.3 years, what distribution, if any, must be made by April 1, 2019?
A)$0
B)$9,804
C)$19,608
D)$150,000
E)None of these

Question

Quizplus · Accepted Answer

The required minimum distribution (RMD) for someone who is 70 1/2 years old with a traditional IRA account balance of $150,000 and a life expectancy of 15.3 years is calculated by dividing the account balance by the life expectancy. Therefore, $150,000 / 15.3 = $9,803.92, which rounds to $9,804. This distribution must be made by April 1 of the year following the year she reaches age 70 1/2.

Danielle, Who Is Retired, Reaches Age 70 1/2 in 2018