Mark is single and must start making distributions from his traditional IRA beginning April 1, 2015. At the end of 2014 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, 2015?

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Quizplus · Accepted Answer

The required minimum distribution (RMD) for 2015 is calculated by dividing the account balance at the end of the previous year ($110,000) by the applicable life expectancy factor for Mark's age (71). The applicable life expectancy factor for age 71 is 26.2. Therefore, the RMD for 2015 is $110,000 / 26.2 = $4,198.47. Since the RMD must be taken by April 1, 2015, Mark must take a distribution of at least $4,198.47 by that date.

Mark Is Single and Must Start Making Distributions from His