About computing IRA RMD when monthly distributions have been taken during the calendar year. Do you add them b

Question

back in to get the year end total of the IRA before applying the proper factor to determine the RMD? e.g.: Beginning of year:$200,000, monthly w/ds of $500. $10,000 growth during year. Yr end total $210,000. Is the factor applied against: $200,000, $210,000, or $216,000? Is the proper factor the one for that age on Dec. 31 of that same year?

Answer 1

You use the actual value as of the end of the previous year. So in your example, you would have started with $200K, taken out 6K, and seen $10K growth, so the starting amount for the next year would be $200K - $6K + $10K or $204K.

Answer 2

The value for the current year RMD calculation is the acccount balance(s) on December 31st of the preceding year.