Retirees should be aware of the minimum amounts that they should withdraw annually from their retirement account to avoid paying penalties. The IRS Uniform Lifetime Table allows retirees to calculate their lifetime RMDs, the retirees who wish to know about their RMD can check the full table here.
IRS Uniform Lifetime Table
The retirees and IRS account holders should calculate the Required minimum distribution from time to time to avoid penalties and any other consequences. The RMD is an amount that retirees with certain Individual Retirement Accounts (IRS) and Employer-sponsored Retirement plans should withdraw annually.
The RMD involves all retirement plans, such as profit-sharing plans, 401(k), 457(b), and 403(b) plans as well as traditional IRAs and others, such as SAESEPs, SEPs, and SIMPLE IRAs.
According to the IRS rules and regulations, retirees should take the RMD by the end of 01 April every year when they reach retirement age, 73 years old. The IRS account holder or their spouse can use the Uniform Lifetime Table to calculate their RMD from their retirement plan accounts and IRAs.
The IRS Uniform Lifetime table depends on the age and Life Expectancy factor of the retirement plan and IRA account holder. The agency updates the Uniform Lifetime Table every 5 or 10 years, the last time the agency updated the table was in 2022. Its changes have been in effect since 2022 and will be applicable for 2024 as well.
- IRS Tax Pro Account
- 2025 IRS Tax Refund Schedule
Who can use the Uniform Lifetime Table?
According to the IRS, three tables help in determining the RMDs – Single Life Expectancy, Joint Life and Last Survivor Expectancy, and lastly Uniform Lifetime Table. So, the retirees who meet certain conditions of tables can calculate their RMD based on the specific table. The retirees can check the condition of the retirees who can use the Uniform Lifetime Table:
- You are an IRA owner and unmarried.
- If married your spouse is the sole beneficiary of your IRS Account but the spouse is not 10 years younger than you.
- You are married and your spouse is not the sole beneficiary of your IRA account.
The retirees should use the age of their birthday when they attained 72 to check their first distribution from the beginning of the date.
IRS Uniform Lifetime Table 2024
The retirees who fit into the IRA Uniform Lifetime table tables condition can check the table for 2024 below to calculate the RMD:
| Age | Life Expectancy Factor (distribution Period) |
| 72 | 27.4 |
| 73 | 26.5 |
| 74 | 25.5 |
| 75 | 24.6 |
| 76 | 23.7 |
| 77 | 22.9 |
| 78 | 22.0 |
| 79 | 21.1 |
| 80 | 20.2 |
| 81 | 19.4 |
| 82 | 18.5 |
| 83 | 17.7 |
| 84 | 16.8 |
| 85 | 16.0 |
| 86 | 15.2 |
| 87 | 14.4 |
| 88 | 13.7 |
| 89 | 12.9 |
| 90 | 12.2 |
| 91 | 11.5 |
| 92 | 10.8 |
| 93 | 10.1 |
| 94 | 9.5 |
| 95 | 8.9 |
| 96 | 8.4 |
| 97 | 7.8 |
| 98 | 7.3 |
| 99 | 6.8 |
| 100 | 6.4 |
| 101 | 6.0 |
| 102 | 5.6 |
| 103 | 5.2 |
| 104 | 4.9 |
| 105 | 4.6 |
| 106 | 4.3 |
| 107 | 4.1 |
| 108 | 3.9 |
| 109 | 3.7 |
| 110 | 3.5 |
| 111 | 3.4 |
| 112 | 3.3 |
| 113 | 3.1 |
| 114 | 3.0 |
| 115 | 2.9 |
| 116 | 2.8 |
| 117 | 2.7 |
| 118 | 2.5 |
| 119 | 2.3 |
| 120 or older | 2.0 |
Important note: If you are taking RMDs from an inherited IRA, then the above formula and table are not applicable in calculating your RMD and tax liability.
How to calculate RMDs?
Now that you have the full table of Uniform Lifetime, you can calculate your Required minimum distribution amount for the year based on your age through the above table through the below formula:
RMD = Account Balance (Last year 31 December) Life Expectancy Factor
You can use the above formula based on your age and life expectancy factor. For instance, if you are calculating your RMD for 2024, suppose you have a $100,500 account balance on 31 Dec 2023 and you turned 75 this year, then your life expectancy factor will be 24.6, so your RMD will be:
RMD = $100,5000 24.6
= $4085.36
This will be your RMD for 2024, the amount that you should withdraw for the year otherwise you have to go through the IRS penalty.
IRS penalty for now withdrawing RMD
The retirees who failed to withdraw the full amount of RMD from their IRAs or retirement plan account at a certain age on the deadline would go through the IRS the following penalty:
- As per IRS rules, the remaining amount you failed to withdraw on the deadline will be subject to 50% exercise tax.
- However, the SECURE 2.0 Act drops the excise tax rate to 25% or 10% if the RMD for continuous two years is correctly withdrawn.
- You need to fill Form 5329 with your income tax return reporting the RMD full amount and the amount not taken from the account.
The retirees can get away with a penalty if the IRA account owner proves the delay in distribution was due to a reasonable situation or error and you may need time to solve the matter. The retirees who seek penalty waiver should attach their explanation for not withdrawing the RMD timely with their Form 5329.
The retirees should withdraw their calculated RMD each year from the IRA account to ensure they do not have to pay taxes on their retirement money that is not taken. The withdrawal of RMD is essential to prevent taxpayers from reducing their tax bills subject to their retirement contributions.