At the end of 2012,Erin was 73 years old and her traditional IRA had a balance of $200,000.She properly withdrew $8,403 from her IRA in 2013.In 2013,her IRA assets earned $25,000.What amount must Erin take as a distribution from her IRA in 2014?

Question

Quizplus · Accepted Answer

To calculate the required minimum distribution (RMD) for 2014, we need to first find the IRA balance as of December 31, 2013.
IRA balance as of December 31, 2013 = $200,000 + $25,000 (earnings) - $8,403 (withdrawal) = $216,597
Next, we use the IRS Uniform Lifetime Table to find the distribution period for someone who was 74 years old at the end of 2013, which is 22.9.
RMD for 2014 = IRA balance as of December 31, 2013 / distribution period = $216,597 / 22.9 = $9,458.03, which rounds to $9,458.

Therefore, the best choice is B) $9,458 with the given explanation.

At the End of 2012,Erin Was 73 Years Old and Her