Required Minimum Distributions

How do you calculate annual Required Minimum Distributions (RMDs)? When must you start taking RMDs? How can you manage their taxable impact?

How do you calculate annual Required Minimum Distributions (RMDs)? When must you start taking RMDs? How can you manage their taxable impact?

If you're turning 73 this year, you'll need to start taking Required Minimum Distributions (RMDs) from pre-tax retirement plan accounts and Traditional IRAs. (Starting in 2033, you can delay taking RMDs until age 75.) 

RMD calculations can be simple or complex, depending on your marital status and several other factors. Finding ways to reduce their taxable impact requires upfront planning. Canby Financial's team of experienced financial planning professionals can help you understand these issues and work with your tax professional to integrate RMDs into your overall financial plan. Contact us to learn more. 


Chris Gullotti discusses the simplest way to calculate annual RMDsHowever, this method won't work for everyone. 



 


David Jaeger's 2023 video explains major changes in RMD rules resulting from the enactment of the SECURE Act 2.0. 


 

Chris Gullotti explains how Qualified Charitable Distributions may help reduce the taxable impact of RMDs from IRAs. 


Joelle Spear explores the potential benefits and risks of using Roth IRA conversions to reduce the tax impact of RMDs. 


Download a PDF version of Canby Financial's RMD Distribution Table, based on the IRS Uniform Lifetime Table, which you can use to calculate your RMDs up to age 105 if you are: an unmarried retirement account owner; a retirement account owner whose spouse is not your sole beneficiary; or a retirement account owner whose spouse is your sole beneficiary and is not more than 10 years younger than you, the account owner.   


If your marital status precludes you from using Canby Financial's RMD Distribution Table, the Required Minimum Distributions area of the IRS website provides education and worksheets to help you calculate your RMDs based on other marital scenarios.