Required Minimum Distribution (RMD)
 

Uniform Distribution Table

RMDs

1. For calculation purposes, the new IRS Uniform Distribution Table assumes a life expectancy based on the owner's age and an assumed beneficiary who is 10 years younger. It usually doesn't matter if there is a beneficiary on the account or how old the beneficiary actually is. (The only time a different table would be used is when the owner is more than 10 years older than the spouse beneficiary.)

2. The complex calculation formulas for the RMD - recalculation, non-recalculation, or hybrid - are gone. All that is required to calculate the RMD is to divide the year-end value of the retirement account by the factor from the table.

RMD Key Benefits

1. The use of a uniform table means that owners may change beneficiaries after their required binning date without changing the amount of the RMD. Previously, a beneficiary change could increase the amount of the RMD.

2. The new rule may lower the RMD, thus lowering the tax obligation on that distribution.

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