• [OT]: Calculating RMD

    From Boris@21:1/5 to All on Fri Jul 9 14:58:21 2021
    How does one calculate the Required Minimun Disbursement from a 401(k)
    rollover or IRA?

    Thanks.

    --
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  • From ira smilovitz@21:1/5 to Boris on Fri Jul 9 15:42:29 2021
    On Friday, July 9, 2021 at 3:03:23 PM UTC-4, Boris wrote:
    How does one calculate the Required Minimun Disbursement from a 401(k) rollover or IRA?

    Thanks.

    --

    See IRS Pub. 590-B. Conceptually, you take the balance in the account on December 31 of the previous year and multiply by a factor derived from the actuarial life expectancy based on your age on that December 31.

    Ira Smilovitz, EA
    Leonia, NJ

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

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  • From ""Retired"@home.com@21:1/5 to ira smilovitz on Fri Jul 9 16:39:54 2021
    On 7/9/21 3:42 PM, ira smilovitz wrote:
    On Friday, July 9, 2021 at 3:03:23 PM UTC-4, Boris wrote:
    How does one calculate the Required Minimun Disbursement from a 401(k)
    rollover or IRA?

    Thanks.

    --

    See IRS Pub. 590-B. Conceptually, you take the balance in the account on December 31 of the previous year and multiply by a factor derived from the actuarial life expectancy based on your age on that December 31.

    Ira Smilovitz, EA
    Leonia, NJ



    Umm...I believe one uses the age at the end of the tax year being filed.

    See https://www.irs.gov/pub/irs-tege/uniform_rmd_wksht.pdf

    where it says:

    1.IRA balance on December 31 of the *previous* year.$_________

    2.Distribution period from the table below for your age on your birthday
    *this year*.

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

    --- SoupGate-Win32 v1.05
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  • From Rick@21:1/5 to All on Fri Jul 9 16:39:23 2021
    "ira smilovitz" wrote in message news:8d22bd08-1c07-4f38-a0e1-4d58d3b63711n@googlegroups.com...

    On Friday, July 9, 2021 at 3:03:23 PM UTC-4, Boris wrote:
    How does one calculate the Required Minimun Disbursement from a 401(k)
    rollover or IRA?

    Thanks.

    --

    See IRS Pub. 590-B. Conceptually, you take the balance in the account on >December 31 of the previous year and multiply by a factor derived from the >actuarial life expectancy based on your age on that December 31.

    Ira Smilovitz, EA
    Leonia, NJ


    if you're below 80 and don't have the table handy you can get a rough
    estimate by taking your balance as of the end of the prior year and dividing that number by the difference between 98 and your age. For example, if you have a $500,000 balance and you are 75 - divide $500,000 by 23 (98-75) and
    you get roughly $21,700.

    --

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

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  • From Boris@21:1/5 to ira smilovitz on Fri Jul 9 16:40:08 2021
    ira smilovitz <ira.smilovitz@gmail.com> wrote in news:8d22bd08-1c07-4f38-a0e1-4d58d3b63711n@googlegroups.com:

    On Friday, July 9, 2021 at 3:03:23 PM UTC-4, Boris wrote:
    How does one calculate the Required Minimun Disbursement from a
    401(k) rollover or IRA?

    Thanks.

    --

    See IRS Pub. 590-B. Conceptually, you take the balance in the account
    on December 31 of the previous year and multiply by a factor derived
    from the actuarial life expectancy based on your age on that December
    31.

    Ira Smilovitz, EA
    Leonia, NJ


    Many thanks.

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From Taxed and Spent@21:1/5 to Boris on Fri Jul 9 17:01:54 2021
    On 7/9/2021 1:40 PM, Boris wrote:
    ira smilovitz <ira.smilovitz@gmail.com> wrote in news:8d22bd08-1c07-4f38-a0e1-4d58d3b63711n@googlegroups.com:

    On Friday, July 9, 2021 at 3:03:23 PM UTC-4, Boris wrote:
    How does one calculate the Required Minimun Disbursement from a
    401(k) rollover or IRA?

    Thanks.

    --

    See IRS Pub. 590-B. Conceptually, you take the balance in the account
    on December 31 of the previous year and multiply by a factor derived
    from the actuarial life expectancy based on your age on that December
    31.

    Ira Smilovitz, EA
    Leonia, NJ


    Many thanks.


    I am surprised nobody mentioned there are a jillion RMD calculators on
    line. Here is one:

    https://www.kiplinger.com/kiplinger-tools/retirement/t032-s000-minimum-ira-distribution-calculator-what-is-my-min/index.php

    There are others that will estimate RMDs over a number of years based on
    an assumed rate of return for your account.

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

    --- SoupGate-Win32 v1.05
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  • From Rick@21:1/5 to All on Fri Jul 9 17:41:56 2021
    wrote in message news:R-6dndNQbc0XM3X9nZ2dnUU7-LvNnZ2d@giganews.com...

    On 7/9/21 3:42 PM, ira smilovitz wrote:
    On Friday, July 9, 2021 at 3:03:23 PM UTC-4, Boris wrote:
    How does one calculate the Required Minimun Disbursement from a 401(k)
    rollover or IRA?

    Thanks.

    --

    See IRS Pub. 590-B. Conceptually, you take the balance in the account on
    December 31 of the previous year and multiply by a factor derived from
    the actuarial life expectancy based on your age on that December 31.

    Ira Smilovitz, EA
    Leonia, NJ



    Umm...I believe one uses the age at the end of the tax year being filed.

    See https://www.irs.gov/pub/irs-tege/uniform_rmd_wksht.pdf

    where it says:

    1.IRA balance on December 31 of the *previous* year.$_________

    2.Distribution period from the table below for your age on your birthday >*this year*.


    I think that's correct. The "end of prior year" date only comes into play
    for determination of the IRA balance. It's the age in the current tax year that determines the line you choose from in the table. So if I turn 72 in 2021, then I use age 72 in the table but I use my total account balance
    total as of the end of 2020.

    --

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From ira smilovitz@21:1/5 to Rick on Fri Jul 9 17:47:55 2021
    On Friday, July 9, 2021 at 5:43:33 PM UTC-4, Rick wrote:
    wrote in message news:R-6dndNQbc0XM3X9...@giganews.com...

    On 7/9/21 3:42 PM, ira smilovitz wrote:
    On Friday, July 9, 2021 at 3:03:23 PM UTC-4, Boris wrote:
    How does one calculate the Required Minimun Disbursement from a 401(k) >>> rollover or IRA?

    Thanks.

    --

    See IRS Pub. 590-B. Conceptually, you take the balance in the account on >> December 31 of the previous year and multiply by a factor derived from
    the actuarial life expectancy based on your age on that December 31.

    Ira Smilovitz, EA
    Leonia, NJ



    Umm...I believe one uses the age at the end of the tax year being filed.

    See https://www.irs.gov/pub/irs-tege/uniform_rmd_wksht.pdf

    where it says:

    1.IRA balance on December 31 of the *previous* year.$_________

    2.Distribution period from the table below for your age on your birthday >*this year*.

    I think that's correct. The "end of prior year" date only comes into play
    for determination of the IRA balance. It's the age in the current tax year that determines the line you choose from in the table. So if I turn 72 in 2021, then I use age 72 in the table but I use my total account balance
    total as of the end of 2020.

    --
    --

    I should know better than to post something without double checking it.

    Ira Smilovitz, EA
    Leonia, NJ

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From Boris@21:1/5 to Taxed and Spent on Fri Jul 9 23:13:28 2021
    Taxed and Spent <nospamplease@nonospam.com> wrote in news:scacvt$vs0$1@dont-email.me:

    On 7/9/2021 1:40 PM, Boris wrote:
    ira smilovitz <ira.smilovitz@gmail.com> wrote in
    news:8d22bd08-1c07-4f38-a0e1-4d58d3b63711n@googlegroups.com:

    On Friday, July 9, 2021 at 3:03:23 PM UTC-4, Boris wrote:
    How does one calculate the Required Minimun Disbursement from a
    401(k) rollover or IRA?

    Thanks.

    --

    See IRS Pub. 590-B. Conceptually, you take the balance in the
    account on December 31 of the previous year and multiply by a factor
    derived from the actuarial life expectancy based on your age on that
    December 31.

    Ira Smilovitz, EA
    Leonia, NJ


    Many thanks.


    I am surprised nobody mentioned there are a jillion RMD calculators on
    line. Here is one:

    https://www.kiplinger.com/kiplinger-tools/retirement/t032-s000-minimum- ira-distribution-calculator-what-is-my-min/index.php

    There are others that will estimate RMDs over a number of years based
    on an assumed rate of return for your account.


    Oh, I'll have to check it out. See if it agrees, somewhat, with the IRS
    calcs.

    Thanks.

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From Boris@21:1/5 to ""Retired"@home.com on Fri Jul 9 23:13:14 2021
    "\"Retired"@home.com wrote in news:R-6dndNQbc0XM3X9nZ2dnUU7-LvNnZ2d@giganews.com:

    On 7/9/21 3:42 PM, ira smilovitz wrote:
    On Friday, July 9, 2021 at 3:03:23 PM UTC-4, Boris wrote:
    How does one calculate the Required Minimun Disbursement from a
    401(k) rollover or IRA?

    Thanks.

    --

    See IRS Pub. 590-B. Conceptually, you take the balance in the account
    on December 31 of the previous year and multiply by a factor derived
    from the actuarial life expectancy based on your age on that December
    31.

    Ira Smilovitz, EA
    Leonia, NJ



    Umm...I believe one uses the age at the end of the tax year being
    filed.

    See https://www.irs.gov/pub/irs-tege/uniform_rmd_wksht.pdf

    where it says:

    1.IRA balance on December 31 of the *previous* year.$_________

    2.Distribution period from the table below for your age on your
    birthday *this year*.


    Thanks.

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From Boris@21:1/5 to Rick on Fri Jul 9 23:13:48 2021
    "Rick" <rick@nospam.com> wrote in news:sca9md$1jrr$1@gioia.aioe.org:

    "ira smilovitz" wrote in message news:8d22bd08-1c07-4f38-a0e1-4d58d3b63711n@googlegroups.com...

    On Friday, July 9, 2021 at 3:03:23 PM UTC-4, Boris wrote:
    How does one calculate the Required Minimun Disbursement from a
    401(k) rollover or IRA?

    Thanks.

    --

    See IRS Pub. 590-B. Conceptually, you take the balance in the account
    on December 31 of the previous year and multiply by a factor derived
    from the actuarial life expectancy based on your age on that December
    31.

    Ira Smilovitz, EA
    Leonia, NJ


    if you're below 80 and don't have the table handy you can get a rough estimate by taking your balance as of the end of the prior year and
    dividing that number by the difference between 98 and your age. For
    example, if you have a $500,000 balance and you are 75 - divide
    $500,000 by 23 (98-75) and you get roughly $21,700.

    --


    That's convenient, and it worked for my situation. My answer makes
    sense.

    Thanks.

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From Boris@21:1/5 to ira smilovitz on Fri Jul 9 23:14:04 2021
    ira smilovitz <ira.smilovitz@gmail.com> wrote in news:7e284818-d919-4c81-8b48-c532f63dbb6fn@googlegroups.com:

    On Friday, July 9, 2021 at 5:43:33 PM UTC-4, Rick wrote:
    wrote in message news:R-6dndNQbc0XM3X9...@giganews.com...

    On 7/9/21 3:42 PM, ira smilovitz wrote:
    On Friday, July 9, 2021 at 3:03:23 PM UTC-4, Boris wrote:
    How does one calculate the Required Minimun Disbursement from a
    401(k) rollover or IRA?

    Thanks.

    --

    See IRS Pub. 590-B. Conceptually, you take the balance in the
    account on December 31 of the previous year and multiply by a
    factor derived from the actuarial life expectancy based on your
    age on that December 31.

    Ira Smilovitz, EA
    Leonia, NJ



    Umm...I believe one uses the age at the end of the tax year being
    filed.

    See https://www.irs.gov/pub/irs-tege/uniform_rmd_wksht.pdf

    where it says:

    1.IRA balance on December 31 of the *previous* year.$_________

    2.Distribution period from the table below for your age on your
    birthday *this year*.

    I think that's correct. The "end of prior year" date only comes into
    play for determination of the IRA balance. It's the age in the
    current tax year that determines the line you choose from in the
    table. So if I turn 72 in 2021, then I use age 72 in the table but I
    use my total account balance total as of the end of 2020.

    --
    --

    I should know better than to post something without double checking
    it.

    Ira Smilovitz, EA
    Leonia, NJ


    No worries. At this point, I was just looking for a ball park figure. I
    had no idea how this was calculated. Not a clue. I'm 69 1/2, and wanted
    to see what I'll be required to pay taxes on. My wife is also 69 1/2.

    I thought that the age when one was required to take RMD was at 70 1/2.
    Guess it changed while I wasn't looking. When I'm ready to take the RMD,
    the upper age, now 98, may be higher. Who knows.

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From John Levine@21:1/5 to All on Sat Jul 10 00:40:18 2021
    According to Taxed and Spent <nospamplease@nonospam.com>:
    I am surprised nobody mentioned there are a jillion RMD calculators on
    line. Here is one:

    https://www.kiplinger.com/kiplinger-tools/retirement/t032-s000-minimum-ira-distribution-calculator-what-is-my-min/index.php

    There are others that will estimate RMDs over a number of years based on
    an assumed rate of return for your account.

    In my experience, the custodian will often compute the RMD for you. I have an inherited IRA at Vanguard and the RMDs
    are all on autopilot after a one-time setup.

    --
    Regards,
    John Levine, johnl@taugh.com, Primary Perpetrator of "The Internet for Dummies",
    Please consider the environment before reading this e-mail. https://jl.ly

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From Alan@21:1/5 to Boris on Sat Jul 10 15:16:44 2021
    On 7/9/21 11:58 AM, Boris wrote:
    How does one calculate the Required Minimum Disbursement from a 401(k) rollover or IRA?

    Thanks.

    Over and above the other replies, you do need to know some other facts
    about minimum required distributions (MRDs) from IRAs and 401(k)s.
    While we are at it, let's throw in 403(b)s.

    Excluding inherited IRAs, MRDs from your non-Roth IRAs can all get
    combined. I.e., after you calculate the MRD for each of your non-Roth
    IRAs (traditional IRAs, SEP IRAs, and SIMPLE IRAs), you can total them
    up and take that total MRD from any combination of those accounts.
    Inherited IRAs have their own calculation (different set of rules) and
    you must take the MRD from the inherited IRA.

    403(b)s work like the above IRAs. You calculate the MRD from each
    403(b, get a total and take the total MRD from any combination of the
    403(b)s.

    401(k)s work slightly differently. You calculate the MRD from each
    company 401(k) and you MUST take each company's MRD from that company's
    401(k).

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From Roger Fitzsimmons@21:1/5 to Alan on Wed Jul 21 22:42:48 2021
    On Saturday, July 10, 2021 at 3:19:50 PM UTC-4, Alan wrote:
    On 7/9/21 11:58 AM, Boris wrote:
    How does one calculate the Required Minimum Disbursement from a 401(k) rollover or IRA?

    Thanks.

    Over and above the other replies, you do need to know some other facts
    about minimum required distributions (MRDs) from IRAs and 401(k)s.
    While we are at it, let's throw in 403(b)s.

    Excluding inherited IRAs, MRDs from your non-Roth IRAs can all get
    combined. I.e., after you calculate the MRD for each of your non-Roth
    IRAs (traditional IRAs, SEP IRAs, and SIMPLE IRAs), you can total them
    up and take that total MRD from any combination of those accounts.
    Inherited IRAs have their own calculation (different set of rules) and
    you must take the MRD from the inherited IRA.

    403(b)s work like the above IRAs. You calculate the MRD from each
    403(b, get a total and take the total MRD from any combination of the 403(b)s.

    401(k)s work slightly differently. You calculate the MRD from each
    company 401(k) and you MUST take each company's MRD from that company's 401(k).

    Most custodians will do it for you if you want them to. I told my custodian to take my RMD on November 30 and put it in my taxable account. Of course RMD's were waived for 2020. I have two IRA's subject to RMD's, both are inherited (one traditional
    one Roth). It will only work if the custodian had the account as of 12/31 of the prior year.

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

    --- SoupGate-Win32 v1.05
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  • From JoeTaxpayer@21:1/5 to Bill W. on Thu Jul 22 11:09:44 2021
    On 7/22/21 10:17 AM, Bill W. wrote:

    Don't forget RMD fans, you can combine RMD's and withdraw the total amount from one IRA account. Make good notes or you will forget you did that

    bw

    Yes. To be very pedantic, like accounts can be grouped. Roths in one
    group, Traditional IRAs, and each inherited IRA. I strongly advise
    people to reduce the number of accounts as they get older. I've seen
    people who literally (to them) "opened an IRA" each year, and had over
    25 different accounts to look at during retirement. Crazy.

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From Bill W.@21:1/5 to Rick on Thu Jul 22 10:17:57 2021
    On Friday, July 9, 2021 at 5:43:33 PM UTC-4, Rick wrote:
    wrote in message news:R-6dndNQbc0XM3X9...@giganews.com...

    On 7/9/21 3:42 PM, ira smilovitz wrote:
    On Friday, July 9, 2021 at 3:03:23 PM UTC-4, Boris wrote:
    How does one calculate the Required Minimun Disbursement from a 401(k) >>> rollover or IRA?

    Thanks.

    --

    See IRS Pub. 590-B. Conceptually, you take the balance in the account on >> December 31 of the previous year and multiply by a factor derived from
    the actuarial life expectancy based on your age on that December 31.

    Ira Smilovitz, EA
    Leonia, NJ



    Umm...I believe one uses the age at the end of the tax year being filed.

    See https://www.irs.gov/pub/irs-tege/uniform_rmd_wksht.pdf

    where it says:

    1.IRA balance on December 31 of the *previous* year.$_________

    2.Distribution period from the table below for your age on your birthday >*this year*.

    I think that's correct. The "end of prior year" date only comes into play
    for determination of the IRA balance. It's the age in the current tax year that determines the line you choose from in the table. So if I turn 72 in 2021, then I use age 72 in the table but I use my total account balance
    total as of the end of 2020.
    Don't forget RMD fans, you can combine RMD's and withdraw the total amount from one IRA account. Make good notes or you will forget you did thatl

    bw

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