As you may know, the CARE Act suspends the Required Minimum Distribution from 401k, IRAs and similar plans for 2020. If you don’t absolutely need the distribution, you might want to consider leaving your investment in place.
But how is the RMD calculated? It’s really quite simple. For 2020 the RMD is based on your account balance on December 31, 2019. That amount is then divided by the IRS lifetime table. The older you are are greater percentage you must take.
For example, let’s say your account balance on the previous years December 31st is $600,000 and you are age 76 this year. Your RMD would be $27,272.72 ($600,000/22). But if you were age 80, your RMD on the same $600,000 would be $32,085.56 simply because you statistically have less time to use the funds.