Sean (Age 74 at End of 2018) Retired Five Years

question 109

Essay

Sean (age 74 at end of 2018) retired five years ago. The balance in his 401(k) account on December 31, 2017 was $1,700,000 and the balance in his account on December 31, 2018 was $1,750,000. In 2018, Sean received a distribution of $50,000 from his 401(k) account. Assuming Sean's marginal tax rate is 25 percent, what amount of the $50,000 distribution will Sean have left after paying income tax on the distribution and paying any minimum distribution penalties (use the IRS table below in determining the minimum distribution penalty, if any).

 

Recognize the legal attributes and privileges granted to corporations.

Explain the concept and requirements of a Subchapter S Corporation.

Differentiate among specialized types of corporations: professional, public, and nonprofit.

Understand the components typically found in the articles of incorporation.

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Definitions:

Linear Effects

Phenomena or changes that are directly proportional to the changes in an independent variable, showing a straight-line relationship in graphical representations.

Worst Predictor

A variable or factor that provides little to no useful information in forecasting or predicting outcomes.

Linear Effects

The impact on a dependent variable that is proportional to the change in an independent variable, suggesting a straight-line relationship in a statistical model.

Months Of Service

The total number of months an individual has worked or served in a particular job or capacity.