The IRS let you put money into an IRA and defer taxes all through your career and even well into your retirement if you retire before age 70. But this situation doesn’t last forever with traditional IRAs. Eventually, you have to take out at least minimum amounts, known as required minimum distributions, or RMDs, from your account once you reach age 70 1/2.
Technically, that means the IRA money must start being withdrawn in specific increments no later than April 1 following the year you reach that age.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 IRS.
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.
IRA required minimum distribution
|Age of retiree||Distribution period (in years)||Age of retiree||Distribution period (in years)|
|92||10.2||115 and older||1.9|