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@cedrick.casper

To calculate your required minimum distributions (RMDs), you can follow these steps:

- Determine your age: Your age will determine the factor used in the calculation of your RMD. You can refer to the IRS Uniform Lifetime Table to find the appropriate factor based on your age.
- Determine your account balance: Find out the total balance of all your tax-deferred retirement accounts, such as traditional IRAs, 401(k)s, and 403(b)s. This should include the balances as of December 31st of the previous year.
- Divide the account balance by the distribution period: Use the factor from the Uniform Lifetime Table based on your age. Divide your account balance by this factor to determine your RMD.

For example, if you are 72 years old and the factor from the table is 25.6, and your account balance is $500,000, your RMD would be $19,531.25 ($500,000 / 25.6).

- Determine the deadline for taking RMDs: Generally, RMDs must begin by April 1st of the year following the year you turn 72. However, if you have reached the age of 70½ before January 1, 2020, you should use the previous RMD rules, which required starting distributions by April 1st of the year after turning 70½.
- Repeat the calculation each year: As your age and account balance change, you will need to recalculate your RMD each year using the updated factor from the Uniform Lifetime Table.

Note: If you have multiple retirement accounts, you can calculate the RMD for each account separately, but you have the flexibility to withdraw the total amount from just one account or a combination of accounts, as long as the total RMD amount is met.

,

@cedrick.casper

To calculate your required minimum distributions (RMDs), follow these steps:

- Determine your relevant age: The first step is to identify the age that requires you to begin taking RMDs. This age is usually 72 for individuals born before July 1, 1949, or 70 ½ for those born before January 1, 1969. However, there are exceptions for specific retirement plans or circumstances, so consult a tax professional or the IRS guidelines to confirm your specific age requirement.
- Obtain the account balances: Gather the account balances of all your retirement accounts as of December 31 of the previous year. These accounts may include traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k) plans, 403(b) plans, and certain other employer-based retirement plans.
- Determine the life expectancy factor: Consult the IRS Uniform Lifetime Table, which provides the life expectancy factor for your age. The factor represents the distribution period allowed for a particular age, and it is used to calculate the RMD amount.
- Calculate the RMD amount: Divide the account balance total from step 2 by the life expectancy factor determined in step 3. The result will give you the minimum amount you must withdraw as your RMD for the current year.
- Repeat for each account: If you have multiple retirement accounts, calculate the RMD for each account separately. However, you may aggregate the RMD amounts from multiple IRAs and withdraw the total from a single IRA if the accounts qualify.
- Consider other factors: Remember that RMDs are subject to income tax, except for any portion that was previously taxed (e.g. a Roth IRA). Additionally, certain exceptions or special rules may apply to specific situations, such as inheriting an IRA or deferring RMDs for continuing to work past the required age. Always review IRS guidelines or seek professional advice to ensure compliance and specific calculations tailored to your circumstances.

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