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CALCULATING MINIMUM REQUIRED DISTRIBUTIONS DURING PARTICIPANT’S LIFETIME

Based On The Uniform Table Using Attained Age Each Year

Mathematical Formula

        MRD_XXXX = Account Balance At End Of Preceding Year ÷ Applicable Distribution Period

Assumed Values

Current Tax Year Is 2002.

Account Balance In Qualified Plan or IRA On December 31, 2001 Was $400,000.

Participant Will Turn Age 70 in 2002 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 Table In §1.401(a)(9)-5, A-4(a)(2)(i) Is 26.2 Years.  (All the distribution periods are shown on Table 21B.  NOTE:  If a spouse is the sole DB and he or she were born 11 or more years after the year of the participant’s birth, use the joint life expectancy for their respective ages as shown on Table VI in Regulation 1.72–9.)

Calculation For 2002

       MRD₂₀₀₂ = $400,000 ÷ 26.2 = $15,267

Calculation For 2003

Use the same formula but remember to substitute the account balance on December 31, 2002 as well as the applicable distribution period from the table corresponding to the participant’s age 71 on his or her birthday in 2003.

If the balance in the retirement account equals $412,733 on 12/31/2002 and the applicable distribution period from the Uniform Table in §1.401(a)(9)-5, A-4(a)(2)(i) for age 71 is 25.3 years, the calculation would be carried out as follows.

MRD₂₀₀₃ = $412,733 ÷ 25.3 = $16,314

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