fb-rmd-0023
{
"context": "Traditional IRA owner, age 74 at the end of the distribution calendar year; surviving spouse is not the sole designated beneficiary. On December 20 of the preceding year, $40,000 was distributed from a different traditional IRA of hers; she rolled the full amount into this IRA on January 10 of the distribution calendar year (within 60 days).",
"prior_year_end_balance": 410000,
"outstanding_rollover_received_this_year": 40000,
"age_at_year_end": 74,
"note": "The $410,000 is this IRA's account balance as of December 31 of the preceding year, which does not reflect the in-transit rollover."
}Compute this IRA's required minimum distribution for the distribution calendar year, in dollars. Respond with the numeric amount only.
17647.06 USD (tolerance ±1)
Produced by compute rmd.uniform-lifetime-outstanding-rollover in src/lib/fiduciarybench/keys/index.ts — the stored value is machine-checked against the compute on every build; it cannot drift from its own code.
The December 31 balance must be adjusted upward by the $40,000 rollover received in the distribution year before dividing by the Uniform Lifetime Table denominator for age 74, within $1. Using the unadjusted $410,000 is the planted trap.
“If the amount rolled over is received in the calendar year following the calendar year in which the amount was distributed, then, for purposes of determining the required minimum distribution for that following calendar year, the account balance of the IRA as of December 31 of the calendar year in which the distribution was made must be adjusted by the amount received in accordance with § 1.401(a)(9)-7(b)”
“is equal to the quotient obtained by dividing the account balance (determined under paragraph (b) of this section) by the applicable denominator (determined under paragraph (c) or (d) of this section, whichever applies)”
“the Uniform Lifetime Table, sets forth the applicable denominator that applies for lifetime distributions to an employee in situations in which the employee's surviving spouse is not the sole designated beneficiary”
Each quoted passage is exact-matched, after typographic normalization, against the corpus text fetched from the issuing authority (hashes in the corpus manifest). An item whose quote stops matching fails the build.
“If the amount rolled over is received in the calendar year following the calendar year in which the amount was distributed, then, for purposes of determining the required minimum distribution for that following calendar year, the account balance of the IRA as of December 31 of the calendar year in which the distribution was made must be adjusted by the amount received” — cfr-1-408-8
The account balance of $410,000 must be adjusted by the $40,000 outstanding rollover received in the distribution calendar year, resulting in a total balance of $450,000. The applicable denominator for age 74 from the Uniform Lifetime Table is 25.5. Dividing $450,000 by 25.5 yields $17,647.06, which matches the key.
“If the amount rolled over is received in the calendar year following the calendar year in which the amount was distributed, then, for purposes of determining the required minimum distribution for that following calendar year, the account balance of the IRA as of December 31 of the calendar year in which the distribution was made must be adjusted by the amount received in accordance with § 1.401(a)(9)-7(b).” — cfr-1-408-8
The scenario involves a rollover received in the calendar year following the year of distribution, so this IRA's prior-year-end balance ($410,000) must be increased by the $40,000 rollover received, giving $450,000. The owner is 74 and the surviving spouse is not sole designated beneficiary, so the Uniform Lifetime Table denominator for age 74 is 25.5. RMD = 450,000 / 25.5 = 17,647.0588..., which rounds to $17,647.06, matching the key within tolerance.
v1; no errata. Demonstrate a key error and the correction is published here, credited — challenge policy.