Jim,age 71,is a Single Taxpayer Who Retired from His Job

Short Answer

Jim,age 71,is a single taxpayer who retired from his job at the Lansing Corporation in 2012.On January 1,2013,when he begins to receive his annuity distribution,the value of his pension plan assets is $200,000 and his basis is zero.What amount must Jim receive in 2013 and how much of the amount he receives is taxable?
$\begin{array} { l }& \text { Required } & \text { Amount } \\&\text { Distribution } & \text { Taxable }\\a. &\$ 7,299 & \$ 7,299 \\b. & \$ 7,547 & \$-0- \\c. & \$ 7,547 & \$ 7,547 \\d. &\$ 12,000 & \$ 10,000 \\\end{array}$