First Distribution
Jonathan was born on June 11, 1928, and became 70 1/2 in 1999. His wife who is his primary beneficiary turned 60 in September 1999. He must begin receiving distributions by April 1, 2000. Jonathan's IRA account balance as of December 31, 1998, is $49,000. Based on their ages at year end (December 31, 1999), the joint life expectancy for Jonathan, age 71, and his beneficiary, age 60 is 23.4 years.

The required minimum distribution for 1999, Jonathan's first distribution year, the year in which he turns age 70 1/2, is $2,094 or $49,000 divided by 23.4. This amount must be distributed to Jonathan by April 1, 2000.

Determining Life Expectancy
The IRS provide the life expectancy tables used to calculated the MRD. Theses tables, Table I - for individual life expectancy and Table II for joint life expectancy can be found in IRS Publication 939.

Subsequent Distribution
You may chose one of two ways to calculate your minimum required distribution after your First Distribution. You may refigure your or your spouse's life expectancy each year or it must be reduced by one for each year that has elapsed since you initially determined your life expectancy. This method is known as term certain.

The value of Jonathan's IRA is $49,000 on December 31, 1998. The IRA account earned 8.0% interest in 1999 and had a value of $52,920. The first distribution was $2,094 resulting in a value of $50,826 which is used to calculate his second distribution.

Using the rules that allows you to refigure your life expectancy, Jonathan is now 72 and his spouse is 61. Using Table II for joint life expectancies the joint life expectancy is 22.6 years. The minimum required distribution would be $2,248 or $52,920 divided by 22.6.