What Is the Minimum IRA Withdrawal Amount?

What Is the Minimum IRA Withdrawal Amount?

What Is the Minimum IRA Withdrawal Amount?

The required minimum distribution is calculated by dividing the prior December 31st balance of an IRA by a life expectancy factor published in IRS tables, according to the IRS. Therefore, this amount is different for everyone. RMDs must be taken for the year in which a person turns 70 1/2.

According to Bankrate, a person must start taking out IRA money in specific increments by April 1st following the year he reaches 70 1/2 years of age. The Uniform Lifetime Table is the most commonly used life-expectancy chart to calculate RMDs. The IRS website provides the three tables that are used.