HomeBusinessMy husband's RMDs start in 2027 and he has multiple IRAs. What...

My husband’s RMDs start in 2027 and he has multiple IRAs. What is the best strategy?

Financial advisor and columnist Jeremy Suschak

SmartAsset and Yahoo Finance LLC may earn commission or revenue from links in the content below.

My husband will be 73 years old on November 16, 2027. How much RMD should he withdraw in 2027 and should he do so between November 16 and December 31, 2027? What percentage of his pension assets should he withdraw each year after that? Is it also correct that he should withdraw from each of his IRAs? Or can he withdraw all from one or two of his accounts, as long as the total withdrawals represent the required percentage of his total portfolio of qualified assets?

– Marisa

When planning retirement withdrawals, required minimum distributions (RMDs) play a central role in determining when and how much retirees should withdraw from their deferred retirement accounts, such as traditional IRAs and 401(k)s. For those approaching age 73, like your spouse, these rules ensure that retirement money is used as intended during your lifetime, rather than being deferred indefinitely.

And how much should your husband withdraw when he turns 73? It depends. We’ll show you how to determine RMD amounts and provide an example calculation that will hopefully help with your own process.

Need help planning RMDs or making other strategic decisions after retirement? Talk to a financial advisor and see how they can help you.

When your husband turns 73 on November 16, 2027, he will be required to complete a mandatory RMD for that year. To calculate the exact RMD for 2027, you need the following data:

  • Account balances as of December 31, 2026: The RMD is based on the previous year’s closing account balances. These accounts include traditional IRAs, 401(k)s, 403(b)s, 457(b)s, and self-employed retirement plans such as SEPs and SIMPLE IRAs. Please note that Roth IRAs are not included in the calculation. Later we will discuss which accounts can be aggregated and which must be approached separately.

  • Divisor of life expectancy: This is a number from the IRS’s Uniform Lifetime Table or Joint Life Expectancy Table, depending on your spouse’s age and, if applicable, your age as a spouse.

For someone living to age 73, the life expectancy divisor from the IRS’s Uniform Lifetime Table is currently 26.5. This factor may change between now and 2027, so check the table for updates before early 2027. Also make sure you use the correct table depending on your circumstances (Uniform or Joint Life, as mentioned above).

See also  How to Make $500 a Month on Occidental Petroleum Stock Before Third Quarter Earnings

To calculate your husband’s RMD when the time comes, divide his December 31, 2026 balance by the appropriate divisor. For example, if his IRA has a closing account balance of $1 million, the calculation would look like this (assuming use of the Uniform Lifetime table and 2024 divisors):

- Advertisement -
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments