How do you calculate your RMD?
RMD Tables
- Locate your age on the IRS Uniform Lifetime Table.
- Find the “life expectancy factor” that corresponds to your age.
- Divide your retirement account balance as of December 31 of the previous year by your current life expectancy factor.
What is the RMD table for 2021?
You must take out your first required minimum distribution by April 1 of the year after you turn 70.5. For all subsequent years, you must take the money out of your accounts by Dec. 31….IRA Required Minimum Distribution (RMD) Table for 2021.
| IRA Required Minimum Distributions | |
|---|---|
| Age | Distribution Period |
| 71 | 26.5 |
| 72 | 25.6 |
| 73 | 24.7 |
Will there be an RMD in 2021?
However, in 2021 you will have to take your first RMD. This RMD is due by the end of 2021, not April 1, 2022. Since they won’t turn 72 until 2021, they won’t have to take their first RMD until April 1, 2022.
How do I calculate my RMD for 2022?
How is RMD calculated? Your RMD will be calculated by taking your Dec. 31, 2021 account balance and dividing by a factor from an IRS table. You will use the 2022 Table III, Uniform Life Table factor for a 72-year-old (27.4).
How do I calculate RMD for taxes?
RMD are calculated by dividing the account’s worth on December 31 of the previous year by the account owner’s life expectancy according to the applicable IRS life expectancy tables.
What is required minimum distribution rule?
Minimum Required Distribution Rule. The IRS stipulates that you must begin receiving at least a minimum distribution from your traditional IRA every year, starting with the year in which you turn age 70 1/2.
How do I calculate the RMD for my IRA account?
The amount of your RMD is calculated by dividing the value of your Traditional IRA by a life expectancy factor, as determined by the IRS. You need to calculate your RMD for each IRA separately, but you have the flexibility take your total RMD amount from either a single IRA or a combination of IRAs.
How to calculate the RMD for an IRA?
Here are the steps for calculating your RMD: Determine the balance of your IRA as of December 31 the previous year. Enter it on line 1 of the worksheet. Find your age on the IRA RMD Table and enter your distribution period on line 2 of the worksheet. Divide the amount on line 1 by the number you entered on line 2. Enter this amount on line 3. This is your RMD for your IRA account.