REQUIRED MINIMUM DISTRIBUTION CHART

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 1 to make the distribution.

 

Return to the Roth & Company Tax Update.

 

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