Your RMD at age 73 depends on your retirement account balance on December 31st of the previous year; you divide that balance by the IRS Uniform Lifetime Table factor for age 73, which is 26.5, resulting in your dollar amount, like $500,000 divided by 26.5 equals about $18,868.
How to Calculate Your RMD
- Find Your Account Balance: Get the value of your IRA, 401(k), etc., from December 31st of the prior year.
- Find Your Factor: Use the IRS Uniform Lifetime Table; for age 73, the factor is 26.5.
- Divide: Your RMD = (Account Balance) ÷ (Life Expectancy Factor).
Example Calculation
- If your account had $500,000 on Dec 31st: $500,000 ÷ 26.5 = $18,867.92.
- This means you must withdraw at least $18,868 from that account in the current year.
Key Things to Remember
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The divisor (26.5) comes from the IRS Uniform Lifetime Table, which changes as you age.
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Failing to withdraw the full RMD can result in a 25% IRS penalty on the shortfall.
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You generally must take RMDs by December 31st each year, though your first one can be delayed until April 1st of the year after you turn 73 (meaning you'd take two in that next year).
