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IRA minimum distributions table
Tax law requires individual retirement account holders
to begin taking
out at least minimum amounts, known as RMDs, from their accounts once they reach
age 70½. Technically, that means the IRA money must start coming
out in specific increments no later than April 1 following the year
you reach that age.
The exact distribution amount changes from year to year. It is calculated by dividing an account's year-end value by the distribution period
determined by the Internal Revenue Service.
In 2009, some account holders can leave their retirement money alone. Because of stock market declines, a new law waives the RMD penalty that usually applies for missed distributions. That means this year some retirees don't have to take money out of accounts that have lost much of their value.
Those who still must take RMDs this year will use one of three tables to figure their mandatory withdrawal amount. Several years ago, the IRS revised distribution rules and the various life expectancy tables used to make the RMD calculations. The reformulation means that taxpayers now have to take out less.
This is welcome news to retirees who have enough income from other
sources and who want to withdraw as little as possible from their
IRAs, letting the accounts grow in value for longer.
The table shown below is the Uniform Lifetime
Table, the most commonly used of three life-expectancy charts that
help retirement account holders figure mandatory distributions.
The other tables are for beneficiaries of retirement funds and account
holders who have much younger spouses.
Joe Retiree, who is 80, a widower and whose IRA was
worth $100,000 at the end of last year would use the Uniform Lifetime
Table. It indicates a distribution period of 18.7 years for an 80-year-old.
Therefore, Joe must take out at least $5,348 this year ($100,000
divided by 18.7).
To calculate the year's minimum distribution amount, take the age of the retiree and find the corresponding distribution period. Then divide the value of the IRA by the distribution period to find the required minimum distribution.
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| Required minimum IRA distributions |
|
|
|
|
|
70 |
27.4 |
93 |
9.6 |
71 |
26.5 |
94 |
9.1 |
72 |
25.6 |
95 |
8.6 |
73 |
24.7 |
96 |
8.1 |
74 |
23.8 |
97 |
7.6 |
75 |
22.9 |
98 |
7.1 |
76 |
22.0 |
99 |
6.7 |
77 |
21.2 |
100 |
6.3 |
78 |
20.3 |
101 |
5.9 |
79 |
19.5 |
102 |
5.5 |
80 |
18.7 |
103 |
5.2 |
81 |
17.9 |
104 |
4.9 |
82 |
17.1 |
105 |
4.5 |
83 |
16.3 |
106 |
4.2 |
84 |
15.5 |
107 |
3.9 |
85 |
14.8 |
108 |
3.7 |
86 |
14.1 |
109 |
3.4 |
87 |
13.4 |
110 |
3.1 |
88 |
12.7 |
111 |
2.9 |
89 |
12.0 |
112 |
2.6 |
90 |
11.4 |
113 |
2.4 |
91 |
10.8 |
114 |
2.1 |
92 |
10.2 |
115 or older |
1.9 |
| -- Updated: March 23, 2009 |
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