marctu
Employee Tax Expert

Retirement tax questions

A required minimum distribution (RMD) is the minimum amount of money that you must withdraw from your retirement accounts each year to comply with federal tax rules. The IRS mandates RMDs for most retirement plans, including traditional IRAs, SEP IRAs, SIMPLE IRAs, and employer-sponsored retirement plans like 401(k)s. Roth IRAs are an exception and do not require RMDs until after the account owner's death.

 

Generally, a RMD is calculated for each account by dividing the prior December 31 balance of that IRA or retirement plan account by a life expectancy factor that the IRS publishes in Tables in Publication 590-B , Distributions from Individual Retirement Arrangements (IRAs). 

 

There are mutual fund companies that will calculate RMD for you, so you should ask.  

 

Lastly, there are a number of calculators that are available.   AARP has a good calculator for example.

 

Thanks again for the question  @dfdancy 

 

All the best,


Marc 

Employee Tax Expert

 

 

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