A hypothetical RMD calculation for an immediate annuityLet's look at an example to see why RMDs would not work for an immediate annuity.If you transferred $100,000 to the IRA annuity at age 72 you may receive $7,250 a year, or 7.25% of your premium in annual income (annuity rates ch...
The calculation for the annual RMD is pretty straightforward. Account owners simply take their year end account balance from the previous year, and divide it by an age factor determined by an IRS table. The specific table to be used depends on each account owners circumstances (i.e. original...
Calculation notes This calculator has been updated for 2024 to include 'SECURE 2.0' and IRS Notices from 2023. SECURE 2.0 increases the age of Required Minimum Distribution (RMD) for account owners. Secure 2.0 did not change how the RMD is calculated; it only changed the age that they start...