Required Minimum Distributions

How much must I take out of my IRA at age 70 1/2?

Required minimum distributions (RMDs) must be taken each year beginning with the year you turn age 70 1/2. The RMD for each year is calculated by dividing the IRA account balance as of December 31 of the prior year by the applicable distribution period or life expectancy. This rule does not apply to your Roth IRAs. You can determine your distribution period or life expectancy by using the Tables in Appendix B of Publication 590-B Distributions from Individual Retirement Arrangements (IRAs).

  • Table I – for beneficiaries
  • Table II – for owners whose spouse is 10 years younger and the IRA’s sole beneficiary
  • Table III – for all other owners (most IRA owners will use this table)

See the discussion of required minimum distributions and worksheets to calculate the required amount.

I am over age 70 ½. Must I receive required minimum distributions from a SEP-IRA or SIMPLE-IRA if I am still working?

Both business owners and employees over age 70 1/2 must take required minimum distributionsfrom a SEP-IRA or SIMPLE-IRA. There is no exception for non-owners who have not retired.

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General FAQs


Distributions (Withdrawals)

Required Minimum Distributions

eIRA also works with those ex-employees with larger account balances who choose to remain in the plan.

A Voluntary Rollover IRA can be set up to receive a distribution from the qualified plan also ensuring the savings maintain a tax deferred status. The distribution from a qualified plan to a Voluntary Rollover IRA has no limit on the amount rolled over, so this is a good solution for any individual. And in most instances, the individual’s IRA balance can be transferred back into a qualified plan available through a new employer if that becomes an option down the road.