• Services
    • Financial Planning
    • Investment Management
  • Blog
  • Resources
    • Retirement Q&A
    • Free Tools
    • In the Media
  • About
  • Contact

Jeremy Kisner

Mobile Menu
(480) 272-7116
  • Blog
  • Resources +
    • Retirement Q&A
    • Free Tools
    • In the Media
  • About
  • Contact

Q: How do I calculate my Required Minimum Distribution?

A:  The company that holds your IRA usually calculates it for you, although it is your responsibility.  The math is pretty simple:

Step 1 – Find out your IRA account balance as of the previous December 31.

Step 2 – Divide by the number from the Uniform Life Expectancy Table that corresponds with the age you will attain on your birthday in the current year. Note, RMDs begin in the year your turn 72.

Uniform Life Table

Let’s look at an example: Suppose your account balance last 12/31 was $250,000 and you are going to be 72 on your birthday this year. You can see from the table above that the divisor that corresponds with your age is 25.6.

Therefore, $250,000 ÷ 25.6 = $9,766.  You must withdraw this amount by 12/31 of this year.

One caveat to the above. You can use the Joint Life Expectancy table, which results in a smaller RMD, if your spouse is more than 10 years younger than you. There is also a different table, the Single Life Expectancy table for beneficiaries of an account (an inherited IRA).

Now that you understand the math, here is an RMD Calculator to make things simple on yourself.

    Q & A Categories

  • Debt & Liabilities
  • Estate & Legacy Planning
  • Featured
  • Insurance & Annuities
  • Investments
  • IRA’s & Qualified Plans
  • Kids & Family
  • Miscellaneous
  • Our Company (Surevest)
  • Retirement Planning
  • Social Security
  • Taxes

Jeremy Kisner, CFP

Jeremy is a lover of all things finance. He likes to play poker, go camping, and practice yoga, but he loves to talk economics and investment strategies even more.

Make sure to read his book, “A Good Financial Advisor Will Tell You” and check out an article quoting him in Barron’s or The Wall Street Journal.

Services

Financial Planning Investment Management

Office
2425 E. Camelback Rd, Suite 890B, Phoenix, AZ 85016

Phone
(480) 272-7116

Work With Jeremy
Financial Planning Investment Management
Keep in Touch
Get my Clear & Concise Financial Advice delivered to your inbox. You will receive one email per week and I promise to never share your email address.
© 2021 | Jeremy Kisner, CFP is an Investment Advisor Representative of Surevest Inc. | Disclosure