How can you calculate minimum required distributions?

New York - To calculate the minimum distribution for a 401k or IRA account, you need to use the following steps:

1. Determine your account balance as of December 31st of the previous year. Let's call this the "December 31 Account Balance."
2. Determine your life expectancy, using the Single Life Expectancy Table or the Uniform Lifetime Table in the IRS instructions. This is known as the "distribution period." This table can be found in IRS publication 939.
3. Let's say for this example, your distribution period found in the table is 20 years. 
4. Divide the "December 31 Account Balance" by the distribution period (or 20 years) to determine the required minimum distribution.

For example, if your account balance is $100,000 and your distribution period is 20 years, your required minimum distribution would be $5,000 ($100,000 / 20).

It's important to note that there are certain rules and limitations that apply to minimum distributions, and failure to take the required minimum distribution can result in a penalty. It's a good idea to consult with a FEE-ONLY professional adviser to ensure that you are taking the appropriate minimum distribution from your retirement account.

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