Sean (Age 74 at End of 2013) Retired Five Years

question 26

Essay

Sean (age 74 at end of 2013) retired five years ago. The balance in his 401(k) account on December 31, 2013 was $1,700,000 and the balance in his account on December 31, 2014 was $1,800,000. Using the IRS tables below, what is Sean's required minimum distribution for 2014? $$\begin{array} { | c | c | l | } \hline \begin{array} { c } \text { Age of } \\\text { Participant }\end{array} & \begin{array} { c } \text { Distribution } \\\text { Period }\end{array} & { \begin{array} { c } \text { Applicable } \\\text { Percentage }\end{array} } \\\hline 70 & 27.4 & 3.65 \% \\\hline 71 & 26.5 & 3.77 \% \\\hline 72 & 25.6 & 3.91 \% \\\hline 73 & 24.7 & 4.05 \% \\\hline 74 & 23.8 & 4.20 \% \\\hline 75 & 22.9 & 4.37 \% \\\hline\end{array}$$

---

Definitions:

Cowardly

Showing a lack of courage or bravery; easily scared to face danger, pain, or adversity.

Panic

An intense, sudden feeling of fear or anxiety that can cause physical symptoms and irrational behavior.

Stress

A factor that can be physical, mental, or emotional, leading to stress in the body or mind and potentially contributing to the onset of illnesses.

Announce

To make a public or formal declaration about a fact, occurrence, or intention.