Question

Mark, who is single, must start making distributions from his pension plan beginning April 1, 2018. At the end of 2017 when Mark was 71 years old, the plan had a balance of $220,000. He will use a single life expectancy. What amount must Mark take as a distribution from the pension plan no later than April 1, 2018?

Answer 1

Answer:

$13,496.93

Explanation:

At the end of 2017, plan had a balance of 220,000

Life expectancy factor at the age of 71 is 16.3 as per single life Expectancy table

So, Distribution amount = $220,000 / 16.3

= 13496.93251533742

= $13,496.93

So, the amount Mark must take as a distribution from the pension plan no later than April 1, 2018 is $13,496.93