Sean (Age 74 at End of 2017)retired Five Years Ago

question 111

Essay

Sean (age 74 at end of 2017)retired five years ago.The balance in his 401(k)account on December 31,2016 was $1,700,000 and the balance in his account on December 31,2017 was $1,750,000.In 2017,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).
$$\begin{array} { c c c } \text { Age of Participarit } & \text { Distribution Period } & \text { Applicable Percentage } \\70 & 27.4 & 3.65 \% \\71 & 26.5 & 3.77 \% \\72 & 25.6 & 3.91 \% \\73 & 24.7 & 4.05 \% \\74 & 23.8 & 4.20 \% \\75 & 22.9 & 4.37 \%\end{array}$$

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Definitions:

Job Characteristics Model

A framework that proposes five core job dimensions, leading to high levels of job satisfaction, motivation, and performance.

Core Job Characteristics

Refers to fundamental attributes that affect job satisfaction and performance, including task variety, task identity, task significance, autonomy, and feedback.

Psychological States

Conditions of the mind impacting thoughts, feelings, and behaviors, which can be influenced by various internal and external factors.

Individual-Level

Pertaining to or focusing on singular entities such as a person or a specific role within a broader system.