Fortunately, the IRS publishes a worksheet that makes it very easy to calculate how much you must take out each year. However, other factors can be a bit tricky, such as what to do with multiple IRAs and how RMDs work when the retirement account holder passes away and the funds are inhe...
This is your RMD amount for this year. Example: If your IRA balance was $100,000 and your age is or will be 75 this year, you would divide the balance by 22.9. Your RMD for this year would be $4,366.82. You can find the IRS worksheet here. AgeDistribution PeriodAgeDistribution ...
How to calculate an RMD for the 2024 tax year Let’s say Claudia (whose spouse is older than 62) turned 72 in June of 2024, and the fair market value of her IRA was $500,000 on December 31, 2023. According to the IRS worksheet, Claudia’s distribution period is 27.4. So her firs...
But, just as there’s a cap on earnings subject to Social Security tax each year (it’s $160,200 for the 2023 tax year), there’s also a maximum monthly Social Security benefit. In 2022, that max was $3,345 if you start drawing at your FRA. See the chart below for a rundown ...