Question

Question 2

Bola began receiving an annuity payment from his traditional IRA when he reached the age of 57. Bola wishes to take a lump-sum distribution from the IRA

but DOES NOT want to incur the recapture tax for modifying the payment stream. Bola celebrates his birthday on March 5.

At what age can Bola take the lump-sum distribution and NOT worry about the excise tax recapture?

A. 59

B. 60

C. 61

D. 62

Answer 1

Bola should wait till age of 59 ½ years to take the lump-sum distribution and NOT worry about the excise tax recapture. The nearest option is 60 years.

Therefore correct answer is option A. 60