Calculating RMDs

A required minimum distribution (RMD) is required for IRA owners starting the year they turn 70 1/2.   RMDs are also required for beneficiaries of IRAs and Roth IRAs.  We will gladly show you the process for calculating RMDs – from an IRA.

Keep in mind what happens if you don’t take your RMD.  The IRS has a penalty for missed RMDs.  The penalty is 50% of the required minimum distribution, plus you still have to pay taxes on the whole amount.

If you would like our guide to calculating your RMD in five easy steps, please click Calculating Your RMD in 5 Easy Steps and fill out the form.  We’ll get you the guide shortly.

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Overview of the Calculation

The process for calculating RMDs is not too difficult.  You start by determining the age of the person who needs to take their RMD.  What you are looking for is the age they would be at the end of the year, December 31 to be precise.  Then you look up the divisor in the IRS’s life table.  The number you find here you will divide into the account(s) balance the previous year on December 31.

If however the person is someone who has inherited an IRA, other than the spouse, then you have little different path to take.  You need to determine the age of the beneficiary on December 31 of the year that they first need to take the first RMD.   You need to note this number or age.  This number will be used for the next many years, through the year the beneficiary would turn approximately 85.  The beneficiary does not get a new number each year.  They take the number they determine in the first year and subtract 1 from that each year.

Keep in mind this sounds pretty simple.  However, calculating RMDs is a little more involved.  That is why we have the RMD guide we can send you – consider getting the guide. our main website

Annuity research website – annuities, there is much misinformation.  One item to be very clear about is that variable annuities are, since 2007, not the in the client’s best interest.  Feel free to find out why at

Our other IRA Site – Required Minimum Distribution