Danielle, who is retired, reaches age 70 1/2 in 2016, and she will also be age 71 in 2016. She has a $150,000 balance in her traditional IRA. If her life expectancy is 15.3 years, what distribution, if any, must be made by April 1, 2017?
A)$0
B)$9,804
C)$19,608
D)$150,000
E)None of the above

Question

Quizplus · Accepted Answer

Danielle has to take her first RMD by April 1, 2017. The RMD amount is calculated by dividing the year-end balance of her IRA by her life expectancy factor.

RMD amount = $150,000 / 15.3 = $9,804.

Therefore, Choice B is the correct answer.

Danielle, Who Is Retired, Reaches Age 70 1/2 in 2016