This Is Exactly How the IRS Determines Your RMD
Key takeaways
- Whether you are already past that threshold or approaching it, understanding how your RMD is calculated is essential, and so is reviewing the calculation with a qualified financial advisor.
- The IRS uses a formula that factors in your total account balances, your age, your life expectancy, and, in some cases, your beneficiary s life expectancy.
- So if your account balance was $250,000 as of December 31 of the prior year, you divide $250,000 by 26.5, arriving at an RMD of $9,433.96.
This Is Exactly How the IRS Determines Your RMD Ian Cooper Wed, June 17, 2026 at 12:30 AM GMT+7 7 min read Once you reach age 73, you are legally required to take Required Minimum Distributions (RMDs), ensuring the government can collect taxes on money that has grown tax-deferred for decades. Whether you are already past that threshold or approaching it, understanding how your RMD is calculated is essential, and so is reviewing the calculation with a qualified financial advisor.
The IRS uses a formula that factors in your total account balances, your age, your life expectancy, and, in some cases, your beneficiary s life expectancy. The core calculation is straightforward: divide your prior year-end account balance by your life expectancy factor from the IRS Uniform Lifetime Table.
At age 73, that factor is 26.5. So if your account balance was $250,000 as of December 31 of the prior year, you divide $250,000 by 26.5, arriving at an RMD of $9,433.96. A link to the full IRS Uniform Lifetime Table can help you find the factor for your specific age.