Question

Terrance is age 71 and retired. Beginning in 2018, he must start taking minimum distributions from his IRA account that had a balance of $150,000 as of December 31, 2017, Make these three assumptions: His IRA will earn 8% per year, he will withdraw the minimum distribution on the last day of each calendar year, and only one distribution will be taken in 2018. Calculate the amount of his distribution for years 2018 through 2022 and the ending balance in his IRA account on December 31, 2022. Use Table I, Table lll and Table V. (Do not round "Applicable Life Expectancy" answers. Round other answers to nearest whole dollar value. Use these answers in subsequent computations.) IRA Balance Applicable Ending IRA Earnings Balance Year Required Distribution At End of Prior Year Life Expectancy 2018 2019 2020 2021 2022 Table Single Life Expectancy) (For Use by Beneficiaries) Age 56 57 58 59 60 Age Life Expectancy Life Expectancy 8.1 7.6 7.1 6.7 6.3 5.9 5.5 5.2 4.9 28.7 27.9 27.0 26.1 25.2 24.4 23.5 22.7 21.8 21.0 20.2 19.4 18.6 17.8 17.0 16.3 15.5 14.8 14.1 13.4 12.7 12.1 11.4 10.8 10.2 9.7 84 85 86 87 89 90 62 63 64 65 92 93 94 95 96 97 98 4.3 67 68 69 70 3.8 3.6 3.1 2.9 2.7 2.5 2.3 2.1 72 73 74 75 76 100 101 102 103 104 105 106 107 108 109 110 111 and over 78 79 80 1.7 82 83 8.6 Table Il (Uniform Lifetime) (For Use by: Unmarried Owners Married Owners Whose Spouses Are Not More Than 10 Years Younger, and Married Owners Whose Spouses Are Not the Sole Beneficiaries of Their IRAs) Age 70 71 72 73 74 Distribution Period Age 93 94 95 96 97 98 Distribution Period 27.4 26.5 25.6 24.7 23.8 22.9 22.0 21.2 20.3 19.5 18.7 17.9 17.1 16.3 15.5 14.8 14.1 13.4 12.7 12.0 11.4 10.8 10.2 9.6 8.6 7.6 7.1 6.7 6.3 5.9 5.5 5.2 4.9 4.5 4.2 3.9 3.7 3.4 75 76 100 101 102 103 104 105 106 107 108 109 110 78 79 80 81 82 83 84 85 86 87 2.9 2.6 2.4 2.1 112 113 114 115 and over 89 90 91 92 TABLE V-ORDINARY LIFE ANNUITIES ONE LIFE-EXPECTED RETURN MULTIPLES MULTIPLE AGE MULTIPLE AGE MULTIPLE AGE 10.0 40.6 39.6 38.7 37.7 36.8 35.9 34.9 34.0 33.1 76.6 75.6 74.7 73.7 72.7 71.7 70.7 69.7 68.8 67.8 66.8 65.8 64.8 63.9 62.9 43 45 46 47 83 84 85 49 50 32.2 89 52 30.4 29.5 28.6 27.7 26.8 25.9 25.0 24.2 23.3 22.5 21.6 20.8 20.0 19.2 18.4 17.6 16.8 54 93 94 56 19 20 60.9 59.9 59.0 58.0 57.0 56.0 55.1 54.1 53.1 52.2 51.2 50.2 49.3 48.3 47.3 46.4 45.4 59 60 24 25 26 100 101 102 103 104 105 106 107 108 109 110 64 65 69 70 32 16.0 15.3 14.6 13.9 13.2 12.5 34 9 36 112 113 114 115 44.4 43.5 42.5 39 40 11.2 10.6

Answer 1

Answen iven ha g inning ia ole he Sta taking re Hre MiniMum a balance 15100 oF Detem ben 31, Lo nke he wil) w:1, drawn we lostd e Minimum Required TRA endin IRA baan Yean ilo2 02 /2,So)-1 (622312 65 8865 13.019-18 16 9 .2o3 202) 16923 loR.0 3,5342 125595 6

Certain re hod Year T epPkca bleiredTRA Ending trc balante 2018 1Sor0ob0 2019|IS 63% 25:56 :12, So?, la | 1629113 235145 3913,5233 s u23 S3 181,666.86 1c130.79 2021 6o16 114 ō 33, 391 66