Mark is single and must start making distributions from his traditional IRA beginning April 1,2014.At the end of 2013 when Mark was 71 years old,the IRA had a balance of $110,000.What amount must Mark take as a distribution from the IRA by April 1,2014?

Question

Quizplus · Accepted Answer

To calculate the Required Minimum Distribution (RMD) for Mark, we need to use the Uniform Lifetime Table provided by the IRS. At 71 years old, Mark's distribution period is 26.5 years.

To calculate the RMD, we divide the IRA balance at the end of the previous year (2013) by the distribution period:

RMD = IRA balance at end of previous year / distribution period

RMD = $110,000 / 26.5 = $4,150.94

Since the IRS requires RMDs to be rounded to the nearest dollar, Mark must take a distribution of $4,151 by April 1, 2014.

Therefore, the best choice is A) $4,151.

Mark Is Single and Must Start Making Distributions from His