Return to Individual Retirement Accounts
Required Distributions - Single Life
IRAs and qualified plans both have certain "required" distributions.
IRAs: You must begin to withdraw funds from your IRA by April 1 of the year following the year you attain age 70 ½ years.
Qualified Plans: Withdrawals must begin by April 1 of the year following the later of (a) the year you reach age 70½, or (b) the year you retire. More than 5% owners must begin to receive distributions by April 1" of the year following the year they reach age 70½.
Each year thereafter, for both IRAs and qualified retirement plans, you must receive a distribution on or before December 31. In order to reduce the required annual distribution each year, you can recalculate your life expectancy based on your then attained age.
Present Age |
Life Expectancy (Years) Unisex Table |
Percentage of Accumulated Funds That Must Be Taken Out Each Year |
70 |
16.0 |
6.25% |
71 |
15.3 |
6.54 |
72 |
14.6 |
6.85 |
73 |
13.9 |
7.19 |
74 |
13.2 |
7.58 |
75 |
12.5 |
8.00 |
76 |
11.9 |
8.40 |
77 |
11.2 |
8.93 |
78 |
10.6 |
9.43 |
79 |
10.0 |
10.00 |
80 |
9.5 |
10.53 |
81 |
8.9 |
11.24 |
82 |
8.4 |
11.90 |
83 |
7.9 |
12.66 |
84 |
7.4 |
13.51 |
85 |
6.9 |
14.49 |
86 |
6.5 |
15.38 |
87 |
6.1 |
16.39 |
88 |
5.7 |
17.54 |
89 |
5.3 |
18.87 |
90 |
5.0 |
20.00 |
Source: Reg. 1.72-9 Table V Ordinary Life Annuities -One Life Expected Return Multiples.
Example: Male age 75 has $100,000 remaining (as of December 31 of the prior year) in his IRA. The amount which must be withdrawn this year is 8.0% of $100,000 or $8000. The following year he would have to withdraw 8.4% of the remaining balance (including earnings for that year). If an individual participates in multiple IRAs, the IRAs may be aggregated for minimum distribution purposes The minimum distribution can be made from one or any combination of IRAs. IRAs may not be aggregated with employer-ponsored plans. Each employer-sponsored plan must make its own minimum distribution.