[OT]: Calculating RMD

See IRS Pub. 590-B. Conceptually, you take the balance in the account on December 31 of the previous year and multiply by a factor derived from the actuarial life expectancy based on your age on that December 31.

Ira Smilovitz, EA Leonia, NJ

if you're below 80 and don't have the table handy you can get a rough estimate by taking your balance as of the end of the prior year and dividing that number by the difference between 98 and your age. For example, if you have a $500,000 balance and you are 75 - divide $500,000 by 23 (98-75) and you get roughly $21,700.

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Umm...I believe 1.IRA balance on December 31 of the *previous* year.$_________

2.Distribution period from the table below for your age on your birthday *this year*.

ira smilovitz snipped-for-privacy@gmail.com wrote in news: snipped-for-privacy@googlegroups.com:

Many thanks.

I am surprised nobody mentioned there are a jillion RMD calculators on line. Here is one:

There are others that will estimate RMDs over a number of years based on an assumed rate of return for your account.

I think that's correct. The "end of prior year" date only comes into play for determination of the IRA balance. It's the age in the current tax year that determines the line you choose from in the table. So if I turn 72 in

2021, then I use age 72 in the table but I use my total account balance total as of the end of 2020.

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I should know better than to post something without double checking it.

Ira Smilovitz, EA Leonia, NJ

"\"Retired"@home.com wrote in news: snipped-for-privacy@giganews.com:

Thanks.

Taxed and Spent snipped-for-privacy@nonospam.com wrote in news:scacvt$vs0$ snipped-for-privacy@dont-email.me:

Oh, I'll have to check it out. See if it agrees, somewhat, with the IRS calcs.

Thanks.

"Rick" snipped-for-privacy@nospam.com wrote in news:sca9md$1jrr$ snipped-for-privacy@gioia.aioe.org:

That's convenient, and it worked for my situation. My answer makes sense.

Thanks.

ira smilovitz snipped-for-privacy@gmail.com wrote in news: snipped-for-privacy@googlegroups.com:

No worries. At this point, I was just looking for a ball park figure. I had no idea how this was calculated. Not a clue. I'm 69 1/2, and wanted to see what I'll be required to pay taxes on. My wife is also 69 1/2.

I thought that the age when one was required to take RMD was at 70 1/2. Guess it changed while I wasn't looking. When I'm ready to take the RMD, the upper age, now 98, may be higher. Who knows.

According to Taxed and Spent snipped-for-privacy@nonospam.com:

In my experience, the custodian will often compute the RMD for you. I have an inherited IRA at Vanguard and the RMDs are all on autopilot after a one-time setup.

Over and above the other replies, you do need to know some other facts about minimum required distributions (MRDs) from IRAs and 401(k)s. While we are at it, let's throw in 403(b)s.

Excluding inherited IRAs, MRDs from your non-Roth IRAs can all get combined. I.e., after you calculate the MRD for each of your non-Roth IRAs (traditional IRAs, SEP IRAs, and SIMPLE IRAs), you can total them up and take that total MRD from any combination of those accounts. Inherited IRAs have their own calculation (different set of rules) and you must take the MRD from the inherited IRA.

403(b)s work like the above IRAs. You calculate the MRD from each 403(b, get a total and take the total MRD from any combination of the 403(b)s.

401(k)s work slightly differently. You calculate the MRD from each company 401(k) and you MUST take each company's MRD from that company's

401(k).

Most custodians will do it for you if you want them to. I told my custodian to take my RMD on November 30 and put it in my taxable account. Of course RMD's were waived for 2020. I have two IRA's subject to RMD's, both are inherited (one traditional one Roth). It will only work if the custodian had the account as of 12/31 of the prior year.

Don't forget RMD fans, you can combine RMD's and withdraw the total amount from one IRA account. Make good notes or you will forget you did thatl

bw

Yes. To be very pedantic, like accounts can be grouped. Roths in one group, Traditional IRAs, and each inherited IRA. I strongly advise people to reduce the number of accounts as they get older. I've seen people who literally (to them) "opened an IRA" each year, and had over

25 different accounts to look at during retirement. Crazy.