Kay turned 70 ½ on March 17th of Year 2. Her profit-sharing account balance was $500,000 at the end of Year 1 and $550,000 at the end of Year 2. Her beneficiary is her favorite granddaughter, Jordan, who turned 12 years old on July 23rd of Year 2. Assume that the joint life expectancy factor for a 70-year-old and a 12-year-old is 71 and the joint life expectancy for a 71-year-old and a 13-year-old is 70. Also, assume that the life expectancy factor based on the uniform lifetime table for someone who is 70, 71, and 72, is 27.4, 26.5, and 25.6, respectively. Kay takes a distribution of $10,000 in November of Year 1 and in Year 2. What is Kay’s minimum distribution for Year 2? $18,248 $18,868 $20,073 $20,755
Kay turned 70 ½ on March 17th of Year 2. Her profit-sharing account balance was $500,000 at the end of Year 1 and $550,000 at the end of Year 2. Her beneficiary is her favorite granddaughter, Jordan, who turned 12 years old on July 23rd of Year 2. Assume that the joint life expectancy factor for a 70-year-old and a 12-year-old is 71 and the joint life expectancy for a 71-year-old and a 13-year-old is 70. Also, assume that the life expectancy factor based on the uniform lifetime table for someone who is 70, 71, and 72, is 27.4, 26.5, and 25.6, respectively. Kay takes a distribution of $10,000 in November of Year 1 and in Year 2. What is Kay’s minimum distribution for Year 2?
- $18,248
- $18,868
- $20,073
- $20,755
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