The Motley Fool Discussion Boards Previous Page Investing/Strategies / Retirement Investing URL:  https://boards.fool.com/iras-rmds-28979040.aspx Subject:  IRAs & RMDs Date:  12/23/2010  9:35 AM Author:  MurrayS Number:  67923 of 96953 Posting on a previous thread, I created a spreadsheet to calculate RMDs based on an annual rate of return, an IRA starting value and the table from this link: http://www.bankrate.com/finance/money-guides/ira-minimum-dis...What is interesting is that the RMD never exceeds 10% of the IRA value at age 70 assuming a 6% return. In other words, if you started out with \$500k in an IRA at age 70, the most you would be forced to take out of your IRA is \$47,819 at age 94 (see table below).Personally, I'm lucky enough to be in the 33% marginal tax bracket. With todays tax brackets, I would have to have an IRA value well over \$2,000,000 to pay more marginal tax than I would pay to convert to a Roth today. Even then, the average tax paid on the highest RMD would be well below 33%.Bottom line, I think too much concern is put on RMDs and some end up paying more in taxes to convert traditional IRAs to Roths due to that concern. Of course, tax laws will change in the future and that may be a good reason to convert.-murray` Dist Age Period RMD % IRA Value RMD70 27.4 3.65% \$500,000 \$18,24871 26.5 3.77% \$510,657 \$19,27072 25.6 3.91% \$520,870 \$20,34673 24.7 4.05% \$530,555 \$21,48074 23.8 4.20% \$539,620 \$22,67375 22.9 4.37% \$547,963 \$23,92976 22.0 4.55% \$555,477 \$25,24977 21.2 4.72% \$562,042 \$26,51178 20.3 4.93% \$567,662 \$27,96479 19.5 5.13% \$572,080 \$29,33780 18.7 5.35% \$575,307 \$30,76581 17.9 5.59% \$577,215 \$32,24782 17.1 5.85% \$577,666 \$33,78283 16.3 6.13% \$576,518 \$35,36984 15.5 6.45% \$573,617 \$37,00885 14.8 6.76% \$568,806 \$38,43386 14.1 7.09% \$562,196 \$39,87287 13.4 7.46% \$553,663 \$41,31888 12.7 7.87% \$543,086 \$42,76389 12.0 8.33% \$530,343 \$44,19590 11.4 8.77% \$515,316 \$45,20391 10.8 9.26% \$498,320 \$46,14192 10.2 9.80% \$479,310 \$46,99193 9.6 10.42% \$458,258 \$47,73594 9.1 10.99% \$435,154 \$47,81995 8.6 11.63% \$410,575 \$47,74196 8.1 12.35% \$384,604 \$47,48297 7.6 13.16% \$357,349 \$47,02098 7.1 14.08% \$328,949 \$46,33199 6.7 14.93% \$299,575 \$44,713100 6.3 15.87% \$270,154 \$42,882101 5.9 16.95% \$240,909 \$40,832102 5.5 18.18% \$212,082 \$38,560103 5.2 19.23% \$183,933 \$35,372104 4.9 20.41% \$157,475 \$32,138105 4.5 22.22% \$132,857 \$29,524106 4.2 23.81% \$109,533 \$26,079107 3.9 25.64% \$88,461 \$22,682108 3.7 27.03% \$69,726 \$18,845109 3.4 29.41% \$53,934 \$15,863110 3.1 32.26% \$40,355 \$13,018111 2.9 34.48% \$28,978 \$9,992112 2.6 38.46% \$20,124 \$7,740113 2.4 41.67% \$13,127 \$5,470114 2.1 47.62% \$8,117 \$3,865115+ 1.9 52.63% \$4,507 \$2,372` Copyright 1996-2020 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us