Take a Required Minimum Distribution

If you will be 70½ years of age or older at the end of this calendar year, the Internal Revenue Service (IRS) requires you to take a distribution from your account. 

This required minimum distribution (RMD) is necessary in all of your tax-sheltered accounts, including:

  • IRA
  • 401(k)
  • 403(b)
  • 401(a)

Required minimum distributions cannot be combined from different account types. For example, a required minimum distribution from a 457(b) account cannot be taken to fulfill a required minimum distribution from a 401(k) rollover account with Ohio Deferred Compensation.

How to Calculate Your RMD

Follow these three steps to calculate your RMD.

Step One:

Find your account balance as of December 31 of the previous year. You can do this by looking at your 4th quarter or 1st quarter statement.

Step Two:

Find your age as of December 31 of this year on the chart below and the distribution period number that corresponds with it.

Step Three:

Divide the value of your account as of December 31 of the previous year by the distribution period number you took from the chart. The result will give you your required minimum distribution.

Example: A participant with an account balance last December 31 of $50,000, who will turn age 75 by the end of this year, would be subject to the following required minimum distribution:

$50,000÷22.9 = $2,184

Age Distribution
Period
Age Distribution
Period
70 27.4 93 9.6
71 26.5 94 9.1
72 25.6 95 8.6
73 24.7 96 8.1
74 23.8 97 7.6
75 22.9 98 7.1
76 22.0 99 6.7
77 21.2 100 6.3
78 20.3 101 5.9
79 19.5 102 5.5
80 18.7 103 5.2
81 17.9 104 4.9
82 17.1 105 4.5
83 16.3 106 4.2
84 15.5 107 3.9
85 14.8 108 3.7
86 14.1 109 3.4
87 13.4 110 3.1
88 12.7 111 2.9
89 12.0 112 2.6
90 11.4 113 2.4
91 10.8 114 2.1
92 10.2 115 and over 1.9

Inherited Accounts

The IRS requires different withdrawal amounts from an inherited account compared to your own account:

  • If the original account holder passed away after their 70½ birthday, the beneficiary keeps the same payout period, which is reduced by one each year. The first RMD will be established the year after the account is transferred to the beneficiary. This RMD calculation results in a higher RMD when compared to an RMD from your own account.
  • If you have inherited an account from your spouse and your spouse passed away before their 70½ birthday, you have the option to wait until the participant would have reached age 70 ½ before you have to start withdrawals. The required minimum distribution period is based upon the beneficiary’s age when the original account holder would have turned 70 ½ from the Single Life Table, and is reduced by one each year thereafter.
  • If you have inherited an account from someone other than a spouse who passed away before their 70½ birthday, withdrawals are not permitted to be delayed. The required minimum withdrawal is based upon the beneficiary’s life expectancy from the Single Life Table, and is reduced by one each year.
Age Life Expectancy Age Life Expectancy Age Life Expectancy Age Life Expectancy
0 82.4 29 54.3 58 27.0 87 6.7
1 81.6 30 53.3 59 26.1 88 6.3
2 80.6 31 52.4 60 25.2 89 5.9
3 79.7 32 51.4 61 24.4 90 5.5
4 78.7 33 50.4 62 23.5 91 5.2
5 77.7 34 49.4 63 22.7 92 4.9
6 76.7 35 48.5 64 21.8 93 4.6
7 75.8 36 47.5 65 21.0 94 4.3
8 74.8 37 46.5 66 20.2 95 4.1
9 73.8 38 45.6 67 19.4 96 3.8
10 72.8 39 44.6 68 18.6 97 3.6
11 71.8 40 43.6 69 17.8 98 3.4
12 70.8 41 42.7 70 17.0 99 3.1
13 69.9 42 41.7 71 16.3 100 2.9
14 68.9 43 40.7 72 15.5 101 2.7
15 67.9 44 39.8 73 14.8 102 2.5
16 66.9 45 38.8 74 14.1 103 2.3
17 66.0 46 37.9 75 13.4 104 2.1
18 65.0 47 37.0 76 12.7 105 1.9
19 64.0 48 36.0 77 12.1 106 1.7
20 63.0 49 35.1 78 11.4 107 1.5
21 62.1 50 34.2 79 10.8 108 1.4
22 61.1 51 33.3 80 10.2 109 1.2
23 60.1 52 32.3 81 9.7 110 1.1
24 59.1 53 31.4 82 9.1 111+ 1.0
25 58.2 54 30.5 83 8.6
26 57.2 55 29.6 84 8.1
27 56.2 56 28.7 85 7.6
28 55.3 57 27.9 86 7.1

Ohio Deferred Compensation will continue to process these withdrawals for you automatically and will send you a notice each year to inform you of your RMD.

NRW-2017OH.3
NRW-2017OH.3
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