The tax law requires traditional IRA owners and many pension plan participants to make annual distributions out of their retirement accounts.This “required minimum distribution” is based on the age of the owner.The amount in the account in any year is simply divided by the distribution factor for the owner to determine the amount to be distributed.For example, the factor from the table for the first minimum distribution at age 70 is 27.4; the minimum from a $1,300,000 IRA would be $1,300,000/27.4, or $47,445.
Use the taxpayer’s age at the end of the current year, but the account balance at the end of the previous year.The distribution normally must be made by December 31; taxpayers who reached age 70 ½ during the year have until the following April 30 to make the distribution.
Maximum
Period Certain
Age of
Employee
27.4
70
26.5
71
25.6
72
24.7
73
23.8
74
22.9
75
22.0
76
21.2
77
20.3
78
19.5
79
18.7
80
17.9
81
17.1
82
16.3
83
15.5
84
14.8
85
14.1
86
13.4
87
12.7
88
12.0
89
11.4
90
10.8
91
10.2
92
9.6
93
9.1
94
8.6
95
8.1
96
7.6
97
7.1
98
6.7
99
6.3
100
5.9
101
5.5
102
5.2
103
4.9
104
4.5
105
4.2
106
3.9
107
3.7
108
3.4
109
3.1
110
2.9
111
2.6
112
2.4
113
2.1
114
1.9
115 and older
The information contained in this website is not to be construed as legal, investment or tax advice. If this type of information is desired, the services of a competent Attorney, Insurance Agent, Investment Advisor or CPA, licensed in good standing with the State in which you reside, should be consulted.