How to Calculate Minimum IRA Distributions

Individual retirement account holders must begin withdrawing minimum amounts of money from their accounts once they are 70.5 years old. This amount changes every year depending on the value of your account at year-end and the distribution period that is set by the Internal Revenue Service. Learn how to easily calculate the minimum IRA distribution following the steps below.

Things You'll Need

• Computer
• Internet

Instructions

1. Go to the link in the Resources section to access the Minimum IRA Distribution table.

2. Look up your age in the table in the "Age of retiree" column.

3. Find the corresponding distribution period in years.

4. Divide the amount of money in the individual retirement account at year-end by the distribution period to determine what the required minimum distribution is. For example, if you are 70 years old, the distribution period is 27.4. If you have $50,000 in your account, divide $50,000 by 27.4. Your minimum distribution is $1,824.82.

Resources

• IRA Minimum Distribution Table