The Amount of the Minimum Required Distribution from a 401(k)

question 79

True/False

The amount of the minimum required distribution from a 401(k) at age 70½ is based on your life expectancy at the time of the distribution.

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Definitions:

Medical Insurance

Insurance that reimburses the costs associated with medical and surgical care received by the insured individual.

Withholding Allowance

A claim made by employees on the W-4 form to reduce the federal income tax withheld from their paycheck.

Taxable Income

The portion of an individual's or business's income that is subject to income tax, after exemptions and deductions.

Taxable Income

The amount of an individual's or entity's income used to determine how much tax is owed, calculated as gross income minus deductions and exemptions.