RMD

[dfdancy]

What is RMD and how do I know the amount of my RMD/who computes it?

[VolvoGirl]

if you are the age to start taking RMD from your IRA or 401K accounts the plan should compute to amount for you and send you a letter saying how much you need to take out.

IRS RMD FAQs

https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs

Q3. When must I receive my required minimum distribution from my IRA? (updated March 14, 2023)

You must take your first required minimum distribution for the year in which you reach age 72 (73 if you reach age 72 after Dec. 31, 2022). However, you can delay taking the first RMD until April 1 of the following year. If you reach age 72 in 2022, you must take your first RMD by April 1, 2023, and the second RMD by Dec. 31, 2023.

If you reach age 72 in 2023, your first RMD for 2024 (the year you reach 73) is due by April 1, 2025.

Here is a worksheet to calculate the RMD

IRA Required Minimum Distribution Worksheet | Internal Revenue Service

And see this post

https://ttlc.intuit.com/community/file-with-turbotax/discussion/my-wife-and-i-are-73-this-year-so-wh... 

[marctu]

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