Calculating your RMD

RMDs are calculated by dividing your account’s prior year-end balance by the applicable IRS life expectancy factor. If you have multiple IRAs, or other tax-deferred retirement accounts subject to an RMD, you must calculate the RMD amount for each account individually.

Note: RMDs are not required for Roth IRAs in your lifetime.

RMD amounts are provided on quarterly statements for investors age 73 and older with Capital Bank and Trust Company (CB&T) traditional IRAs, SIMPLE IRAs, SEP IRAs, SARSEP IRAs and 403(b)s (including Texas ORPs). In most cases, the RMD section will fall on page 2 or 3 of the statement.

The RMD amount displayed on quarterly statements is calculated based on the IRS Uniform Lifetime Table, unless elected otherwise, using the account's value as of December 31 of the prior year and your date of birth.

Note: If you turn 73 in 2026, your RMD amount will not be displayed on your quarterly statement. Contact us if you would like Capital Group to calculate the RMD amount for you.

Information needed to calculate your RMD

1. The prior year-end account balance, which you can find on your year-end statement or by logging in to your account
2. Your IRS life expectancy factor — The IRS provides tables to determine the factor to use each year, based on your age and the beneficiary on the account:
   1. Uniform Lifetime Table — Use this table to calculate lifetime RMDs from IRAs and retirement plan accounts for unmarried account owners, married owners whose spouses aren't more than 10 years younger and married owners whose spouses are not the sole beneficiary
   2. Joint Life and Last Survivor Expectancy Table — Use this table to calculate RMDs from IRAs and retirement plan accounts when the sole beneficiary is the account owner’s spouse who is more than 10 years younger

Note:

• If you have a 403(b), you must calculate the RMD for each 403(b) account separately, but you can take the total amount from 1 or more of your 403(b)s
• RMDs from 401(k), 457, money purchase plan and profit-sharing plan accounts must be taken separately from each plan

How your RMD will appear on your tax forms

Distributions, including any federal and/or state tax withholding, taken during the calendar year are reported on Form 1099-R. If you are age 59½ or older, the amount is coded as a normal distribution.

RMDs are generally fully taxable. It is the IRA owner and their tax advisor’s responsibility to determine the tax liability.

Review our tax form schedule to determine when forms will be available.

Inherited IRAs

There are several factors that impact how to calculate the RMD amount for an inherited IRA, including:

1. The beneficiary’s relationship to the IRA owner
2. The beneficiary’s age
3. Whether the IRA owner had started taking RMDs

Contact a tax advisor or financial professional for assistance in completing the calculation and refer to IRS Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs).