CALCULATING MINIMUM
REQUIRED DISTRIBUTIONS DURING PARTICIPANT’S LIFETIME
Based On The Uniform Lifetime Table Using Attained Age Each Year
Mathematical Formula
MRDXXXX =
Account Balance At End Of Preceding Year ÷ Applicable Distribution Period
Assumed
Values
Current Tax Year Is 2007.
Account Balance In Qualified Plan or IRA On December 31,
2006 Was $400,000.
Participant Will Turn Age 70 in 2007 And Will Also
Attain Age 70½ By Year-End.
If Participant’s Spouse Is The Sole Designated
Beneficiary, That Spouse Was Born Not More Than 10 Calendar Years After The Year Of
Participant’s Birth.
Applicable Distribution Period From The Uniform Lifetime
Table In §1.401(a)(9)-9, A-2 Is 27.4 Years. (The Uniform Lifetime Table appears on this web site
as Table 21B.
NOTE: If a spouse is the sole
DB and he or she was born 11 or more years after the year of the participant’s
birth, use their joint life expectancy based on their respective attained ages as shown on
the Joint and Last Survivor Table
in A-1 of §1.401(a)(9)-9.)
Calculation For 2007
MRD2007 = $400,000 ÷ 27.4 =
$14,599
Calculation For 2008
Use the same formula but remember to
substitute the account balance on December 31, 2007 as well as the applicable
distribution period from the table corresponding to the participant’s age 71 on his
or her birthday in 2008.
If the balance in the retirement
account equals $412,379 on 12/31/2007 and the applicable distribution period from the
table in §1.401(a)(9)-9, A-2 age 71 is 26.5 years, the calculation would be carried out
as follows.
MRD2008 = $412,379 ÷ 26.5 =
$15,561
