STUPID EASY Way to Calculate Your RMD In 4 STEPS.

[@MaxGrey03]

Does this really have to be calculated seperately for each account (assuming that all accounts are traditional IRA accounts) or could you just sum all the accounts, do the RMD calcuation and then make sure to withdraw that total (from one or more of your accounts)?

[@propathfinancial]

Hi, no it does not. The IRS aggregation rule views it all as one big pot of money (not including 401ks, they calculate individually). So you will want to sum them all up and find the total RMD. You can withdraw from one or all of them. Just make sure to track the amounts because wherever the IRAs are held will have a calcuation for you and it may seem like you underwithdrew. Also, I have another video about this coming out tomorrow, make sure to subscribe. Thanks!

[@MaxGrey03]

@@propathfinancial thanks for the confirmation. I figured it worked this way, but all other resources that I have seen are pretty vague in this area. I will look out for your new video.

[@Satjr35031]

It’s a lot easier to use the multiple times table than the division table

[@propathfinancial]

Thanks for your comment and watching! The IRS deliberately outlines the RMD calculation as a division calculation. In fact, it must be and is used on their worksheets. Any other calculation could be leading you down a path of over or under distributing. Good luck and thanks again!

[@Satjr35031]

@@propathfinancial Have you seen the multiplication table ?

[@propathfinancial]

@@Satjr35031 No I have not. I would love to see what you are referring to. It is hard to comprehend how any calculation could be easier than prior year balance dividend by the divisor in the IRS tables. In fact, to use multiplication, it seems that it would make the calculation even more complex. Thanks!

[@Satjr35031]

@@propathfinancial this year it’s 4.05 for 73 next year for 74 it’s 4.21% etc You can probably google it I have it saved to my phone It compares either division or multiplication all the way down

[@Satjr35031]

@@propathfinancial Those were the tables from 2021 that you were addressing Since the new RMD went to 73 The new table would be 3.78% for age 73 and 3.93% for 74

[@bernaclischurchill4463]

I know this video is old, but I will turn 73 on 12/28, this puts my birthday too close to the cut off date, or does it. it would only give me 48 hrs to make the necessary transactions so that I would not end up having to take two RMDs the following year.. Do you think a brokerage firm can move that fast to meet the necessary deadline, or can I request my RMD before my actual birthday, to meet the cut off?

[@propathfinancial]

Ya, good question. You have the entire year to take the RMD. So don’t wait until the last minute. It just needs to be done by year end. IRS rules are “in the year you turn age…”. Hope this helps. Thank you for watching!

[@bernaclischurchill4463]

@@propathfinancial Thank you. Greatly appreciated.

[@touringusa8760]

Is the filers age considered that it is on 12/31 of the previous year (as is the IRA amount taken), or is the filers age considered one year older after his birthday in the year that he files? What if he files before he turns one year older in the year he files? There seems to be some confusion about this. Thx for your insight.

[@propathfinancial]

Hi there, good question but let's destroy the confusion. First, don't use the word "files" when you are working on RMDs. Files applies to social security. Next, the RMD amount is always based off the prior year end balance on 12/31. Lastly, the age you use is the age you turn in that year. For example, this year 2024, you turn 73. In any month, doesn't matter, you turn 73. You take your RMD at any point this year and the calculation is based off of 12/31/2023. Then next year, you turn 74. Now you use year end balance on 12/31/2024 and the new age is 74 which gets you a different divisor on the RMD tables that the IRS creates. A couple clarifying points: 1. You can take the RMD any time throughout the year. 2. Age matters for the divisor on the RMD table that fits your situation. There are 3. 3. The prior year balance is always used for the next years RMD.

[@touringusa8760]

@@propathfinancial The IRS publications seem to me are vague on this point. Thanks for making the point clear.

[@darlenemcclenny3909]

It's now age 73.

[@propathfinancial]

Yup, RMD age increases to age 73 this year and to age 75 in 2033. If you turn age 72 this year, your RMD is not due until next year (2024). Could they make it more complex?

[@darlenemcclenny3909]

@functionalretirement it's like a moving target!

[@propathfinancial]

@@darlenemcclenny3909 Ya, thanks IRS😂

[@mike73ng]

You can avoid it by converting to a Roth. You pay taxes when you convert but never again. Convert 333,000 per year for three years. You would have to pay $200,000 in taxes but never again.

[@gregwessels7205]

@@darlenemcclenny3909 " it's like a moving target!" with a 50% penalty for missing.🎯