IRAs - Traditional
How Do I Calculate The IRS'S Mandatory Required Distribution
Minimum distributions must be made by April 1 the year after the year you turn 70 and a half. After the first distribution, minimum distributions must be made by December 31 each year. Step 1 is to Access the proper life expectancy table. Life expectancy tables are in Appendix C of IRS PUBLICATION 590. Table 1 is for use by one beneficiary. Table 2 is for IRA owners whose spouse is more than 10 years younger than the owner and the spouse is the sole beneficiary. Table 3 is for anyone else. Step 2 is to Find the appropriate life expectancy amount to determine distribution period. Step 3 is to Divide the IRA account balance from December 31 of the prior year by the distribution period to calculate the minimum distribution for the period.
Note If you need professional help with "IRAs - Traditional" or have other tax questions, we can help you find a local licensed CPA for a free, no-obligation consultation.