IRA Uniform Lifetime Table
| Age | Distribution Period (years) | Age | Distribution Period (years) |
|---|---|---|---|
| 70 | 27.4 | 86 | 14.1 |
| 72 | 25.6 | 88 | 12.7 |
| 74 | 23.8 | 90 | 11.4 |
| 76 | 22.0 | 92 | 10.2 |
| 78 | 20.3 | 94 | 9.1 |
| 80 | 18.7 | 96 | 8.1 |
| 82 | 17.1 | 98 | 7.1 |
| 84 | 15.5 | 100 | 6.3 |
Required Minimum Distribution Calculations
The table above can be used to calculate the amount the IRS requires those age 70 1/2 and above to withdrawal from his/her IRA or other tax-qualified account. In the year you turn age 70 1/2 the IRS requires that you begin what is referred to as a “Required Minimum Distribution.”
For Example:
If you have a $200,000 IRA and you are age 70 1/2, your distribution would be approximately $7299.27 for that year.
$200,000 divided by 27.4 (27.4 equals the life expectancy in years of a person age 70 years old) = $7299.27
Distributions and Fixed Annuity Accounts
It is worth noting that most investment companies will calculate your distribution for you, withhold federal and/or state taxes, and send the residual amount to you. If you own multiple tax qualified accounts, you can withdrawal a larger amount from one IRA to satisfy the amount needed for all accounts.
Insurance companies and annuity accounts in particular are well designed for required minimum distributions. Fixed and indexed annuity accounts do not lose value, and in this way, you would never be selling a depreciated asset due to market fluctuation.
