Zena must start making distributions from her traditional IRA beginning April 1,2014.At the end of 2013,the plan had a balance of $220,000 and Zena was 71 years old.What minimum amount must Zena take as a distribution from the IRA beginning April 1,2014?

Question

Quizplus · Accepted Answer

The minimum distribution is calculated by dividing the account balance by the life expectancy factor. For a 71-year-old, the life expectancy factor is 26.5. Therefore, the minimum distribution is $220,000 / 26.5 = $8,302.

Zena Must Start Making Distributions from Her Traditional IRA Beginning