Joe and Big Al show you how to calculate your required minimum distribution.
0:17 “You want to look at your balance in your IRA at year end, and then you divide it by your life expectancy factor, which is from an IRS table, and that factor at 70 ½ is 27 so you take your balance divided by 27, and another way to say that is to take your balance and multiply it by about 3.6”
0:38 “Second year, your life expectancy shortens a little bit, so that factor is lower, so you have to take a higher percentage out. A lot of people don’t realize that as you age, you need to take more and more out of your IRA and therefore you have more and more that’s taxable”
0:57 “If I’m married to someone that’s ten years younger, then your required distribution goes on a different table, so it gets a little complex once you start taking the distributions out”