Bodie has worked for one employer his entire career. While he was working, he participated in the employer's defined contribution plan (traditional 401(k)). At the end of 2023, Bodie retires. The balance in his defined contribution plan at the end of 2022 was $1,170,100. Assuming that Bodie is 76 years old at the end of 2023 and his marginal tax rate is 32 percent, what amount of the amount of taxes and penalties, (if any)would he have to pay if he only takes a distribution of $44,390 for 2023? EXHIBIT 13-3 Abbreviated Uniform Lifetime Table for Distributions Age of Participant Distribution Period Applicable Percentage* 72 27.4 3.65 73 26.5 3.77 74 25.5 3.92 75 24.6 4.07 76 23.7 4.22 77 22.9 4.37 78 22.0 4.55
Bodie has worked for one employer his entire career. While he was working, he participated in the employer's defined contribution plan (traditional 401(k)). At the end of 2023, Bodie retires. The balance in his defined contribution plan at the end of 2022 was $1,170,100. Assuming that Bodie is 76 years old at the end of 2023 and his marginal tax rate is 32 percent, what amount of the amount of taxes and penalties, (if any)would he have to pay if he only takes a distribution of $44,390 for 2023? EXHIBIT 13-3 Abbreviated Uniform Lifetime Table for Distributions Age of Participant Distribution Period Applicable Percentage* 72 27.4 3.65 73 26.5 3.77 74 25.5 3.92 75 24.6 4.07 76 23.7 4.22 77 22.9 4.37 78 22.0 4.55
Chapter6: Business Expenses
Section: Chapter Questions
Problem 64P
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Transcribed Image Text:Bodie has worked for one employer his entire career. While he was working, he participated in
the employer's defined contribution plan (traditional 401(k)). At the end of 2023, Bodie retires.
The balance in his defined contribution plan at the end of 2022 was $1,170,100.
Assuming that Bodie is 76 years old at the end of 2023 and his marginal tax rate is 32 percent,
what amount of the amount of taxes and penalties, (if any)would he have to pay if he only
takes a distribution of $44,390 for 2023?
EXHIBIT 13-3 Abbreviated Uniform Lifetime Table for Distributions
Age of Participant
Distribution Period
Applicable Percentage*
72
27.4
3.65
73
26.5
3.77
74
25.5
3.92
75
24.6
4.07
76
23.7
4.22
77
22.9
4.37
78
22.0
4.55
Answered
975,667
ct Answer
15,452 margin of error +/- 2
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