Your RMD

Taking Your Required Minimum Distribution

If you have money in a traditional IRA, a 401(k) or 403(b) plan, you normally must begin to take money out by April 1 of the year following the year in which you turned 72. 

If you follow those directions exactly, there is a good chance that you will have to take two distributions in one year and that can have unintended tax consequences. More often it is best to begin to take the money out in the year that you turn 72

The calculation is rather simple. You take the account balance as of December 31 of the prior year and divide by the number shown in the distribution period for your age in the current year.

If today was Jan 1, 2022, and you were born May 14, 1946, this is what you would do.

  1. Take account balance as of 12/31/2021
  2. Determine your age in the year that you are taking the distribution. In this example, you are 76 years young
  3. Look at the table for your age (76) and the divisor, which is 23.7.  Divide your account balance by the divisor and that is the Required Minimum Distribution.

You may aggregate your IRA accounts and take the amount from one or divide it among them. If you are taking money from 401(k) accounts, you must determine and withdraw the RMD from each one. If you have 403(b) accounts, you may aggregate and take from one.  You cannot mix and match between types of retirement accounts.

New Uniform Life Tables for Calculating RMDs take effect January 1, 2022

Age
New Uniform Table RMD Factor
New RMD as a % of Account Balance
Age
New Uniform Table RMD Factor
New RMD as a % of Account Balance
70
29.1
3.44%
96
8.4
11.91%
71
28.2
3.55%
97
7.8
12.83%
72
27.4
3.65%
98
7.3
13.70%
73
26.5
3.78%
99
6.8
14.71%
74
25.5
3.93%
100
6.4
15.63%
75
24.6
4.07%
101
6
16.67%
76
23.7
4.22%
102
5.6
17.86%
77
22.9
4.37%
103
5.2
19.24%
78
22
4.55%
104
4.9
20.41%
79
21.1
4.74%
105
4.6
21.74%
80
20.2
4.96%
106
4.3
23.26%
81
19.4
5.16%
107
4.1
24.40%
82
18.5
5.41%
108
3.9
25.65%
83
17.7
5.65%
109
3.7
27.03%
84
16.8
5.96%
110
3.5
28.58%
85
16.8
5.96%
111
3.4
29.42%
86
15.2
6.58%
112
3.3
30.31%
87
14.4
6.95%
113
3.1
32.26%
88
13.7
7.30%
114
3
33.34%
89
16
6.25%
115
2.9
34.49%
90
12.2
8.20%
116
2.8
35.72%
91
11.5
8.70%
117
2.7
37.04%
92
10.8
9.26%
118
2.5
40.00%
93
10.1
9.91%
119
2.3
43.48%
94
9.5
10.53%
120+
2
50.00%
95
8.9
11.24%