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REQUIRED MINIMUM DISTRIBUTIONS (RMD): IRA AND 401K



Hi.  If you have a Traditional IRA/401k and are 73 or older, please read on.........

Once you reach age 73, you are required to withdraw an RMD from your tax-deferred retirement account by 12/31 of each year.

RMD rules apply to tax-deferred retirement accounts:

  • Traditional IRAs

  • Rollover IRAs

  • SIMPLE IRAs

  • SEP IRAs

  • Most small-business accounts (Keoghs)

  • Most 401(k) and 403(b) plans

(If you turned 73 in 2023,  you are required to take your first RMD by April 1 2024.  After that, RMD must be paid out by Dec 31 of each year)

Your RMD amount is calculated by dividing your tax-deferred retirement account balance as of December 31 of last year by your life expectancy factor. If you have more than one tax-deferred retirement account, this number is the sum of all your account balances on December 31 last year.

Your life expectancy factor is taken from the Uniform Lifetime Table.

Age

70

71

72

73

74

75

LIfe Expectancy Factor

27.4

26.5

25.6

24.7

23.8

22.9

If you have questions, please let me know.

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