To calculate your required minimum distribution, simply divide the year-end value of your IRA or other applicable retirement account (such as a traditional 401(k)) by the distribution period value that matches
IRA minimum distribution can be calculated three waysSusan Bondy
The IRS requires that you withdraw at least a minimum amount - known as a Required Minimum Distribution - from your retirement accounts annually; starting the year you turn age 70-1/2. Determining how much you are required to withdraw is an important issue in retirement planning. Use this ca...
Whatever your required distribution, always check what the tax withholding is. "Come tax time you may owe a lot," says Kevin Martin, manager of theTax Institute at H&R Block. "By default, it's usually 10% withholding. Depending on the size of your accounts, that may not be enough. So...
Roth IRAshave no minimum distribution requirement until after the death of the account owner. A surviving spouse who inherits a Roth IRA is not subject to required minimum distributions. All other beneficiaries of inherited Roths are required to take distributions, either based on their ownlife ex...
The questions are designed to help you determine whether you need to file a federal tax return and if you need to adjust your Form W-4 to eliminate tax withholding. The IRS has stated that they want to help eliminate wasted time and money from returns that are filed when they don’t ne...
For example, if you were required to withdrawal $10,000 from your IRAs and you failed to do so, your IRS penalty could be as high as $5,000! In addition, you will be responsible for federal income taxes on the $10,000 amount once you do take the RMD....
The reader asks whether he must begin to withdraw monthly on January 1, March 1, or September 1. He also wants to know will the minimum distribution calculation be a percentage of his IRA value on January 1, 2008, September 1, 2008, December 31, 2008 or some other time....
The article cites the method for calculating the required minimum distribution (RMD) from the individual retirement account (IRA). It provides an example of calculating the RMD if there is a 3-month grace period that ends on April 1 of the following year. Based on the example, it recommends...
Why A QLAC in an IRA Is a Terrible Way to Defer the Required Minimum Distribution (RMD) ObligationKitces, Michael E.Journal of Personal Finance