What is Ian's Required Minimum Distribution for 2022?

Calculation of Required Minimum Distribution (RMD) for 2022

As per the information provided, Ian retired in December 2021 at the age of 71, with his birthday being on January 6. His retirement account was valued at $370,000 at the end of 2020 and $380,000 at the end of 2021. He has had all of his retirement accounts open for 15 years.

To calculate the required minimum distribution (RMD) for 2022, we need to use the formula:

RMD = Account balance at the end of 2021 / Distribution period

Given that Ian's traditional 401(k) account balance at the end of 2021 is $380,000 and dividing it by the distribution period of 25.6 (derived from his age of 71), we can calculate Ian's RMD for 2022 as follows:

RMD = $380,000 / 25.6

RMD ≈ $14,843.75

Therefore, Ian's required minimum distribution (RMD) for 2022 from his traditional 401(k) account is approximately $14,843.75.