Jason is a Lockheed Martin employee and is currently 73 years old with a life expectancy factor of 24.7. His IRA had an ending balance of $500,000 last year. Jason takes out $19,243 from his IRA for this year.
- $500,000 Ending balance / 24.7 Life expectancy factor = $20,243 RMD for current year
- $20,243 RMD – $19,243 Amount withdrawn = $1,000 Remainder
- $1,000 Remainder X 50% Penalty percentage = $500 Penalty
As you can see, the RMD calculation is quite simple, yet a critical number to remember once you turn 72 in order to avoid the penalty. At Strittmatter Wealth, our Lockheed Martin Retirement Specialists let you know when it’s time for your first RMD and will make sure this is taken care of on an ongoing basis.
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