How to Calculate an RMD
Calculating your required minimum distribution (RMD) can make the difference between retiring on time and having to work through old age. The RMD relates to the minimum amount that a retirement plan account owner must withdraw annually starting with the year he reaches 70 1/2 years of age. It includes your 401 (k), 403(b), 457(b) and other profit-sharing plans. Knowing your RMD can give you a needed perspective for your future.
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Instructions
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1
Write down your IRA balance, through Dec. 31 of the previous year. The IRA balance can be found through the bank that is handling your investment or retirement account.
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2
Access the IRA Required Minimum Distribution Worksheet form and scroll down the page. Find your age on the chart and write down the distribution period.
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3
Divide Step 1 by Step 2 to get the RMD of your retirement investment.
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