RMD calculation question

[Kay Kruse JPM]

Owner must start taking RMD in 2026. 

He has Roth Assets of 500,000 12/31/25

Pre-Tax assets of 500,000 12/31/25

A current life insurance policy is also in the account.  The "cash value" as of 12/31/25 per the policy statement is 120,000.  The life policy will remain active with premiums being paid.

is the RMD calculated on 500,000 or 620,000?

it seems to read on the IRS website that the life policy would not be included in an RMD calculation unless it is the year that the life policy is being distributed.  But I am not sure if I am reading that correctly.  I have found conflicting information elsewhere.

Any insight would be appreciated. 

[David D]

RMD's are on the total account balance of the pre-tax assets, so $620,000

[ErnieG]

Lay:  The client would need to obtain the Fair Market Value (FMV) of the life insurance policy to determine the value, which may or may not be the Cash Value.  It may be the $620,000 or some other value based on the year-end FMV combined with the other assets.

[ErnieG]

Kay