Distribution Rules and Taxation (RMDs)

David, age 74, has a traditional IRA with a December 31, 2025 balance of $1,000,000. His applicable IRS Uniform Lifetime Table distribution period for 2026 is 25.5. Approximately what is David’s required minimum distribution (RMD) for 2026?

1. $25,500
2. $39,216
3. $40,000
4. $49,020