McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 10

Kim has worked for one employer her entire career.While she was working, she participated in the employer's defined contribution plan [traditional 401(k)].At the end of 2011, Kim retires and the balance in her defined contribution plan was $2,000,000 at the end of 2010.a.What is Kim's minimum required distribution for 2011 in 2012 if she is 68 years old at the end of 2011?
b.What is Kim's minimum required distribution for 2011 if she turns 70½ during 2011 and she has not turned 71 years old by the end of the 2011? When must she receive this distribution?
c.What is Kim's minimum required distribution for 2011 in 2012 if she is 73 years old at the end of 2011?
d.Assuming that Kim is 75 years old at the end of 2011 and that her marginal tax rate in 2011 is 33 percent, what will she have remaining after taxes if she receives only a distribution of $50,000 for 2011?.