IRA distribution tables
IRA distribution tables provide the Required Minimum Distribution (RMD) rate for beneficiary withdrawals, expressed by both the divisor and by the percentage distribution rate.
What are Required Minimum Distributions?
Required Minimum Distributions (RMDs) generally are minimum amounts that a retirement plan account owner must withdraw annually starting with the year that he or she reaches 70 ½ years of age or, if later, the year in which he or she retires. However, if the retirement plan account is an IRA or the account owner is a 5% owner of the business sponsoring the retirement plan, the RMDs must begin once the account holder is age 70 ½, regardless of whether he or she is retired.
Retirement plan participants and IRA owners are responsible for taking the correct amount of RMDs on time every year from their accounts, and they face stiff penalties for failure to take RMDs.
Calculation of the required minimum distribution
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 IRS publishes in Tables in Publication 590-B. Use the:
- Joint and Last Survivor Table if your sole beneficiary of the account is your spouse and your spouse is more than 10 years younger than you;
- Uniform Lifetime Table if your spouse is not your sole beneficiary or your spouse is not more than 10 years younger; and
- Single Life Expectancy Table if you are a beneficiary of an account.
IRA distribution tables
The IRA distribution tables follow.
For example, IRS Table III Uniform RMD Table shows a Life expectancy factor of 27.4 at age 70 (the first entry in the table) and is calculated as:
- Withdrawal Rate of 3.65% = 0.0365 = 1 / 27.4
Table III (Uniform Lifetime) is for use by:
- Unmarried Owners,
- Married Owners Whose Spouses Are Not More Than 10 Years Younger, and
- Married Owners Whose Spouses Are Not the Sole Beneficiaries of Their IRAs.
Use this table to figure the RMD for an IRA account owner.
Also use this table if you are a spouse who chooses to roll an IRA over to your own IRA (treat as your own) after the death of a spouse.[note 1]
Table II (Joint Life and Last Survivor Expectancy) is for use by owners whose spouses are more than 10 years younger and are the sole beneficiaries of their IRAs. If you are married and there is an age differential of 10 years or more between spouses, use these joint-life tables for determining the RMD of the plan owner. (See Publication 590.)
Table I (Single Life Expectancy) is for use by beneficiaries.
- If you are the surviving spouse who is the sole beneficiary of your deceased spouse's IRA, you may elect to be treated as the owner and not as the beneficiary. See: Publication 590 (IRA Beneficiaries)
- Publication 590-B (2014), Distributions from Individual Retirement Arrangements (IRAs), Appendix B contains the Life Expectancy Tables.
- RMD calculator, FINRA
- Required minimum distribution calculator, Bankrate.com
- IRA beneficiary calculator, Bankrate.com.
- Required minimum distribution calculator, Vanguard