Life Expectancy Tables for RMDs

Life Expectancy Tables for RMDs

Life Expectancy Tables for Required Minimum Distributions (RMDs) are actuarial tables used to determine the minimum amount that must be withdrawn from retirement accounts, such as IRAs and 401(k)s, after reaching a certain age, typically 72.

These tables provide life expectancy estimates based on age and, in some cases, the account holder’s gender. The RMD is calculated by dividing the retirement account balance at the end of the previous year by the appropriate factor from the life expectancy table. This ensures that retirement funds are distributed over the account holder’s lifetime, helping to manage tax implications and ensure the funds are utilized.

For example, if a 75-year-old individual has a retirement account balance of $100,000 and the life expectancy factor for their age is 22.9, the RMD for the year would be approximately $4,367 ($100,000 / 22.9).