Ian retired in December of 2022 at the age of 72 (his birthday is January 6). Ian's retirement account was valued at $352,000 at the end of 2021 and $360,000 at the end of 2022. He has had all of his retirement accounts open for 15 years.Note: Leave no answers blank. Enter zero if applicable. Round your final answers to the nearest whole dollar amount.Required:What is Ian's required minimum distribution for 2022 and 2023 under each of the following alternative scenarios? (Use Exhibit 13-3)Ian's retirement account is a traditional 401(k) account.Ian's retirement account is a Roth 401(k) account.Ian's retirement account is a traditional IRA.Ian's retirement account is a Roth IRA. 20222023a. Required minimum distributionb. Required minimum distributionc. Required minimum distribution13,140 ×13,5720 ☑0 ☑13,140 xd. Required minimum distribution013,572 ✓0 EXHIBIT 13-3 Abbreviated Uniform Lifetime Table for DistributionsAge of ParticipantDistribution PeriodApplicable Percentage*7227.43.657326.53.777425.53.927524.64.077623.74.227722.94.377822.04.55*The applicable percentage is calculated by dividing 1 by the relevant distribution period.Source: Treasury Decision 9930 (November 8, 2020), https://public-inspection.federalregister.gov/2020-24723.pdf

To calculate Ian's required minimum distributions (RMDs) for each scenario, we'll use the…

2022 2023 a. Required minimum distribution b. Required minimum distribution c. Required minimum distribution 13,140 × 13,572 0 ☑ 0 ☑ 13,140 x d. Required minimum distribution 0 13,572 ✓ 0 EXHIBIT 13-3 Abbreviated Uniform Lifetime Table for Distributions Age of Participant Distribution Period Applicable Percentage* 72 27.4 3.65 73 26.5 3.77 74 25.5 3.92 75 24.6 4.07 76 23.7 4.22 77 22.9 4.37 78 22.0 4.55 *The applicable percentage is calculated by dividing 1 by the relevant distribution period. Source: Treasury Decision 9930 (November 8, 2020), https://public-inspection.federalregister.gov/2020-24723.pdf

2022 2023 a. Required minimum distribution b. Required minimum distribution c. Required minimum distribution 13,140 × 13,572 0 ☑ 0 ☑ 13,140 x d. Required minimum distribution 0 13,572 ✓ 0 EXHIBIT 13-3 Abbreviated Uniform Lifetime Table for Distributions Age of Participant Distribution Period Applicable Percentage* 72 27.4 3.65 73 26.5 3.77 74 25.5 3.92 75 24.6 4.07 76 23.7 4.22 77 22.9 4.37 78 22.0 4.55 *The applicable percentage is calculated by dividing 1 by the relevant distribution period. Source: Treasury Decision 9930 (November 8, 2020), https://public-inspection.federalregister.gov/2020-24723.pdf

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 83E

See similar textbooks

Required:

What is Ian's required minimum distribution for 2022 and 2023 under each of the following alternative scenarios? (Use Exhibit 13-3)

Ian's retirement account is a traditional 401(k) account.
Ian's retirement account is a Roth 401(k) account.
Ian's retirement account is a traditional IRA.
Ian's retirement account is a Roth IRA.

2022
2023
a. Required minimum distribution
b. Required minimum distribution
c. Required minimum distribution
13,140 ×
13,572
0 ☑
0 ☑
13,140 x
d. Required minimum distribution
0
13,572 ✓
0

EXHIBIT 13-3 Abbreviated Uniform Lifetime Table for Distributions
Age of Participant
Distribution Period
Applicable Percentage*
72
27.4
3.65
73
26.5
3.77
74
25.5
3.92
75
24.6
4.07
76
23.7
4.22
77
22.9
4.37
78
22.0
4.55
*The applicable percentage is calculated by dividing 1 by the relevant distribution period.
Source: Treasury Decision 9930 (November 8, 2020), https://public-inspection.federalregister.gov/2020-24723.pdf

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Trending now

This is a popular solution!

Step by step

Solved in 1 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Problem 26-3 (IAA) Rachel Company revealed the following information for the current year: Fair value of plan assets-January 1 Projected benefit obligation-January 1 Current service cost Past service cost Actual return on plan assets Contribution to the plan Benefits paid to retirees Discount rate 1. What amount should be reported as employee benefit expense? a. 2,000,000 2,200,000 c. 2,500,000 d. 1,750,000 2. What amount should be reported as fair value of plan assets on December 31? a. 7,000,000 b. 6,500,000 c. 6,200,000 d. 5,500,000 5,000,000 7,500,000 1,450,000 300,000 500,000 1,500,000 800,000 10% 3. What amount should be reported as projected benefit obligation on December 31? a. 9,250,000 b. 9,700,000 c. 8,950,000 d. 9,200,000 4. What amount should be reported as accrued benefit cost on December 31? a. 3,000,000 b. 2,500,000 c. 2,000,000 d. 1,500,000
Question Description The following information was obtained from the financial statements of X Inc. Defined Benefit Plan Obligations Pension Benefits 2020……………………..2019 Defined Benefit Obligation(DBO): Balance, beginning of year…………………………………………$40,032…………………..42,370 Current Service Cost…………………………………………………… 864…………………. 1,126 Interest Cost…………………………………………………………… 2,344…………………... 2,255 Benefits Paid……………………………………………………………(3,198)………………….. (2,881) Actuarial Gains………………………………………………………... (3,339)………………….. (2,838) Balance, end of year………………………………………………….$36,703……………….….$40,032 Defined Benefit Plan Assets Pension Benefits 2020…………..…………2019 Balance, beginning of year…………………………………………$75,891………………….$90,828 Expected return on Plan Assets……………………………………. 5,599………………….. 6,723 Employee…
What amount of interest revenue should be recorded in 2021? *a. 490,000b. 480,000c. 438,000d. 391,800
II IIUTIOLIUITFIUVIUEU Dy reision FIGII ACLUGI y. a. Projected benefit obligation as of December 31, 2020 = $3,200. b. Prior service cost from plan amendment on January 2, 2021 = $600 (straight-line amortization for 10-year average remaining service period). c. Service cost for 2021 = $640. d. Service cost for 2022 = $690. e. Discount rate used by actuary on projected benefit obligation for 2021 and 2022 = 10%. Payments g. Payments to retirees in 2022 = $570. h. No changes in actuarial assumptions or estimates. i. Net gain-AOCI on January 1, 2021 = $370. j. Net gains and losses are amortized for 10 years in 2021 and 2022. to retirees in 2021 = $500. Information Provided by Pension Fund Trustee: a. Plan asset balance at fair value on January 1, 2021 = $2,300. b. 2021 contributions = $660. c. 2022 contributions = $710. d. Expected long-term rate of return on plan assets = 12%. e. 2021 actual return on plan assets = $210. f. 2022 actual return on plan assets = $260. Required: 1. Calculate…
QUESTION 1 Gold BHD is a local manufacturing company specialising in computer and technical services. The company was listed in Bursa Malaysia since 2010 with 45,000,000 units of ordinary shares, 500,000 units of 4% redeemable preference shares and 12,000,000 units of 5% non-cumulative preference shares as at 30 June 2021. The trial balance of the company based on the unadjusted balances is shown below: Silver Tech Bhd Trial Balance as at 30 June 2021 Debit Credit RM'000 RM'000 Revenue 35,500 Cost of sales 6,500 Distribution costs 950 Administrative costs 1,300 Investment income 120 Freehold land (revaluation) Building (revaluation) 55,000 60,000 Machineries (cost) 78,900 Motor vehicles (cost) 63,700 Intangible asset 250 Investment properties 500 Investment 432 Accumulated depreciation as at 1 July 2020: Building 10,000 Machineries 3,500 Motor vehicles 2,540 Ordinary shares 45,000 4% redeemable preference shares 500 5% non-cumulative preference shares 12,000 Retained profit 191,142.…
Accounts Payable as of December 31, 2020 should amount to: *A. 531,000B. 600,000C. 627,000D. 1,827,000
* 0o ... 身 3 5O 620 Required Information Knowledge Check 01 Which of the following cause a decrease in the funded status of a defined benefit plan? (Select all that apply.) Check All That Apply Amortization of Prior service cost-AOCI Amortization of Net loss-AOCI Contributions to fund Expected return on plan assets Gains on nlan assets Finacial-Accoun...pdf Finacial Acco....pages Finacial Acco...pages student-s-re pd MacBook Air 114 F8 02 F3 F4 F5 93 24 4. 6 9 L
PROBLEM 6: MULTIPLE CHOICE – COMPUTATIONAL 1. The actuarial valuation report of an entity shows the following information: Present value of defined benefit obligation, Jan. 1 340,000 Current service cost 30,000 Discount rate 10% Benefits paid to retirees Actuarial gain 100,000 60,000 How much is the year-end balance of the present value of defined benefit obligation? a. 210,000 b. 244,000 c. 304,000 d. 364,000
*see attached What is the compensation expense for 2021?a. 120,000b. 240,000c. 200,000d. 660,000
*see attached What is the interest income for the current year? a. 1,297,905b. 1,357,905c. 900,000d. 870,168
What is the revenue earned from award credits for 2022? *see attached a. P 0b. P 28,000c. P 36,000d. P 116,000
Intel-period Tax Allocation Chris Green, CPA, is auditing Rayne Co.s 2019 financial statements. For the year ended December 31, 2019, Rayne is applying GAAP for income taxes. Raynes controller, Dunn, has prepared a schedule of all differences between financial statement and income tax return income. Dunn believes that as a result of pending legislation, the enacted tax rate at December 31, 2019, will be increased for 2020. Dunn is uncertain which differences to include and which rates to apply in computing deferred taxes. Dunn has requested an overview of GAAP from Green. Required: Prepare a brief memo to Dunn from Green that identifies the objectives of accounting for income taxes, defines temporary differences, explains how to measure deferred tax assets and liabilities, and explains how to measure deferred income tax expense or benefit.