Danielle,who Is Retired,reaches Age 70 1/2 in 2015,and She Will

question 8

Multiple Choice

Danielle,who is retired,reaches age 70 1/2 in 2015,and she will also be age 71 in 2015.She has a $150,000 balance in her traditional IRA.If her life expectancy is 15.3 years,what distribution,if any,must be made by April 1,2016?

• A)$0
• B)$9,804
• C)$19,608
• D)$150,000
• E)None of the above

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Definitions:

Retirement Plan

A financial strategy that outlines savings and investments to provide income during retirement, possibly including pensions, 401(k) plans, and IRAs.

Employee Benefit

Various types of non-wage compensation provided to employees in addition to their normal wages or salaries.

Compounded Monthly

The method of computing interest monthly, taking into account both the original amount of money and the interest that has been added over time.