IRA Uniform Lifetime Table For RMD Amounts
IRA Uniform Lifetime Table For RMD Amounts
Using the IRA Uniform Lifetime Table below, you can easily calculate your Required Minimum Distribution amount in order to stay in compliance with the IRS each year. The divisor that corresponds with your age will tell you how much to expect each year based on the value of your qualified account(s).
| Age of Account Owner | Divisor | Age of Account Owner | Divisor |
|---|---|---|---|
| 70 | 27.4 | 86 | 14.1 |
| 71 | 26.5 | 87 | 13.4 |
| 72 | 25.6 | 88 | 12.7 |
| 73 | 24.7 | 89 | 12.0 |
| 74 | 23.8 | 90 | 11.4 |
| 75 | 22.9 | 91 | 10.8 |
| 76 | 22.0 | 92 | 10.2 |
| 77 | 21.2 | 93 | 9.6 |
| 78 | 20.3 | 94 | 9.1 |
| 79 | 19.5 | 95 | 8.6 |
| 80 | 18.7 | 96 | 8.1 |
| 81 | 17.9 | 97 | 7.6 |
| 82 | 17.1 | 98 | 7.1 |
| 83 | 16.3 | 99 | 6.7 |
| 84 | 15.5 | 100 | 6.3 |
| 85 | 14.8 | 101 | 5.9 |
Required Minimum Distribution Calculations
The table above can be used to easily calculate the amount the IRS requires those to withdraw from your IRA or other tax-qualified account once you have reached age 70 1/2. In the year you turn age 70 1/2 the IRS requires that you begin what is referred to as a Required Minimum Distribution in order to stay compliant with the law. A snapshot of the value of your account will be taken on December 31st each year in order to calculate your RMD.
For Example:
If you have a $200,000 IRA and you are age 70 1/2, your distribution would be approximately $7,299.27 for that year.
To arrive at this number, $200,000 is divided by 27.4 and that equals $7,299.27. Each year the divisor (or life expectancy of the account owner) grows smaller. The smaller the divisor, the larger the required minimum distribution. Assuming the account grew in the example above and was again worth $200,000 the next year, the same process would take place again. Using the divisor of 26.5 for someone age 71, the RMD amount would be $7,547.17 ($200,000 divided by 26.5 = $7,547.17)
Required IRA Distributions and Fixed Annuity Accounts
It is worth noting that most investment companies will calculate your distribution, withhold federal and/or state taxes, and send the remaining amount to you. If you own multiple tax qualified accounts, you can withdrawal a larger amount from one IRA to satisfy the amount needed for the total of all qualified accounts.
Insurance companies and annuity accounts in particular are well designed for required minimum distributions. Fixed and indexed annuity accounts do not lose value, and in this way, you would never be selling a depreciated asset due to negative investment performance and overall market fluctuations.
Understanding The IRA Uniform Lifetime Table
We provide assistance with safe, insured and conservative accounts designed to automatically calculate your RMD each year (and withhold taxes if desired) and then send you the remaining funds.
Please contact us if you would like to learn more about how we can help you with your IRA accounts and RMD calculations.