Jim,age 71,is a Single Taxpayer Who Retired from His Job

question 55

Short Answer

Jim,age 71,is a single taxpayer who retired from his job at the Lansing Corporation in 2012.On January 1,2013,when he begins to receive his annuity distribution,the value of his pension plan assets is $200,000 and his basis is zero.What amount must Jim receive in 2013 and how much of the amount he receives is taxable?
$\begin{array} { c c } \text { Required } & \text { Amount } \\ \underline { \text { Distribution }} & \underline { \text { Taxable } } \\ a.\$ \$ 7,299 & \$ 7,299 \\b.\$ 7,547 & \$-0- \\c.\$ 7,547 & \$ 7,547 \\d.\$ 12,000 & \$ 10,000\end{array}$

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Definitions:

Albumin

A family of globular proteins, the most common being serum albumin in the blood, which helps maintain osmotic pressure and transport lipids and steroids.

Fibrinogen

A blood plasma protein that's converted to fibrin in the blood clotting process.

Myoglobin

Myoglobin is a protein found in muscle cells that binds oxygen molecules, facilitating oxygen delivery to the mitochondria for energy production.

Coronary Artery

A type of blood vessel that supplies blood to the heart muscle itself, crucial for providing oxygen and nutrients to sustain heart function.