To determine the Required Minimum Distribution (RMD) for your pension, follow these steps:
- Determine the balance of your pension account as of December 31 of the previous year. For this example, we'll use $200,000.
- Use the appropriate IRS life expectancy table. The most commonly used table is the Uniform Lifetime Table. You can find the tables here
- Calculate the RMD: Divide your account balance by the distribution period from the appropriate IRS life expectancy table.
- For example, if your account balance is $200,000 and the distribution period is 22.0 years, your RMD would be:$200,000/22.0 = $9,090.91RMD.
You can use the IRS RMD Worksheets or the Investor.gov RMD Calculator to help with the calculations
