MINIMUM DISTRIBUTION: EXAMPLE
01.Core Concepts
Facts • Account Balance on Dec 31, 20x1 = $400,000 • Age on Dec 31, 20x2 = 73 (factor of 26.5) • Distribution required for 20x2 (by April 1, 20x3) $400,000 ÷ 26.5 = $15,094.34 • If the account balance was $480,000 on Dec 31, 20x2 (age factor – 25.5) • Distribution for 20x3 (by Dec 31, 20x3) $480,000 ÷ 25.5 = $18,823.53