turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

angprim
New Member

I can not figure out how to calculate my RMD! I am 80 years old. I don't remember seeing this on last years tax forms. Can you explain how to get this?

 
Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

3 Replies
DianeW777
Employee Tax Expert

I can not figure out how to calculate my RMD! I am 80 years old. I don't remember seeing this on last years tax forms. Can you explain how to get this?

The required minimum distribution (RMD) is calculated by the financial institution or plan administrator for your retirement distribution.  You should simply answer yes, this is an RMD and you can always check with the plan administrator.  They are usually quite clear on the rules and the amount that is required to be distributed to you each year.

 

This begins when you start taking distribution at a certain age, which was a lower age when yours began than it is now. It is calculated based on earnings and your age when it begins. The link below will give more details about the RMD.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

I can not figure out how to calculate my RMD! I am 80 years old. I don't remember seeing this on last years tax forms. Can you explain how to get this?

Your RMD is calculated by each of your tax advantage accounts.  So if you have a regular IRA (not a Roth account) the brokerage account will calculate the RMD for that account.  If you have multiple accounts each account will calculate and report the RMD for each account.  You are required to withdraw that amount from the account each year.  

The RMD is calculated using IRS table on life expectancy.  Table III for an 80 year old person is 20.2 .  You would take the value of your IRA account (each account separate) on Dec 31, 2022 and divide by 20.2  For example if you had an IRA with an account balance of $100,000 on Dec 31, 2022 you would need to withdraw at least $4,951 from that account (100,000/ 20.2)  The RMD should be on the forms your broker sent you.  If you have any questions pleases call your broker  or the company managing your account (such as E*TRADE)

Hope this helps

  

I can not figure out how to calculate my RMD! I am 80 years old. I don't remember seeing this on last years tax forms. Can you explain how to get this?

First, an RMD is not a specific withdrawal, it is the smallest amount you must withdraw over the year to avoid a penalty.  (You are not allowed to leave money in an IRA forever, you are supposed to withdraw it and pay tax when you retire.)  For example, if your RMD amount is $5000, that could be satisfied by a single withdrawal of $5000, but it would also be satisfied if you withdrew $500 per month for living expenses (because the total would be more than the minimum amount.)

 

Second, RMDs are calculated for each type of account.  If you have more than one 401k, you combine them all to figure out the RMD for your 401ks.  If you have more than one IRA, you combine all your IRAs to figure out your IRA RMD.  But if you have a 401k and an IRA, they are not combined, each has its own RMD.

 

The formula involves your life expectancy and the account balance.  Rather than trying to do the formula, you can try this calculator.

https://www.aarp.org/retirement/required-minimum-distribution-calculator.html

 

You can also ask the customer service department at the bank or broker that holds your accounts.

 

Also, if you have a traditional pension, the entire pension payment is considered your RMD for purposes of this question in Turbotax, and you don't need to do a calculation.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies