For Senior Taxpayers
Question: I am over age 70½. How do I determine the amount I must withdraw each year from my IRA & 401(k) accounts to avoid penalty?
Generally, a required minimum distribution (RMD) is calculated for each account by dividing the prior December 31 balance of that IRA or retirement plan account by a life expectancy factor that IRS publishes in Tables in Publication 590 (PDF), Individual Retirement Arrangements (IRAs). There are three separate tables:
- The Uniform Lifetime Table (Table III) is used by an unmarried owner, a owner whose spouse is not the sole beneficiary, and an owner whose spouse is not more than 10 years younger;
- The Joint and Last Survivor Table (Table II) is used by a married owner whose spouse is both more than 10 years younger and the sole beneficiary of the account; and
- The Single Life Expectancy Table (Table I) is used by a beneficiary of an account.
You can use Worksheet 1-5, Figuring the Taxable Part of Your IRA Distribution, on page 44 of Publication 590 (PDF).
Category: Other (Alternative Minimum Tax, Estates, Trusts, Tax Shelters, State Tax Inquiries)
Subcategory: For Senior Taxpayers