Individual Retirement Arrangements (IRAs) > Distributions, Early Withdrawals, 10% Additional Tax

Previous Page | Table of Contents | Next Page Right Arrow

Frequently Asked Tax Questions

Individual Retirement Arrangements (IRAs) - Distributions, Early Withdrawals, 10% Additional Tax

How do I calculate the minimum amount that must be withdrawn from my IRA after age 70 1/2?

Rev. date: 4/6/2011

Additional Taxes on Qualified Plans (including IRAs) and Other Tax-Favored Accounts

Distribution

Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. (Info Copy Only)

Individual Retirement Arrangement

Traditional IRA

Chapter 1 of Publication 590, Individual Retirement Arrangements (IRAs), gives a complete explanation of how to calculate this amount.

Generally,

The minimum distribution for each year is computed by dividing the IRA account balance at the close of business December 31 of the preceding year by the life expectancy.
The life expectancy is determined by using one of three tables found in Publication 590.
      o      Table I is used by beneficiaries when they are the sole owner.
      o      Table II is for use by owners whose spouse is more than 10 years younger and the spouse is the sole beneficiary.
       o      Table III is generally for use by unmarried owners, owners whose spouse is a beneficiary and not more than 10 years younger and owners whose spouses are not sole beneficiaries.

New Update –

Waiver of required minimum distributions for 2009. Required minimum distributions (RMDs) for 2009 are waived for defined contribution plans and IRAs, including SEP-IRAs and SIMPLE IRAs. See Distributions in chapters 2 , 3 and 4 of Publication 560. Note that this waiver does not apply to any RMDs for 2008 that are required to be made on or before April 1, 2009 as a result of the individual attaining age 70.5 in 2008.

Note that lawmakers waived the 2009 minimum distribution requirement and, as a result minimum distributions for tax year 2009 are not required.

Additional Information

Publication 590 Individual Retirement Arrangements (IRAs)Publication 560 Retirement Plans for Small Business

Previous Page | Table of Contents | Top of Page | Next Page Right Arrow

Frequently Asked Tax Questions

Individual Retirement Arrangements (IRAs) - Distributions, Early Withdrawals, 10% Additional Tax

How do I calculate the minimum amount that must be withdrawn from my IRA after age 70 1/2?