Required Minimum Distribution (RMD) Calculator

Retirement Planning: The IRS requires that you withdraw at least a minimum amount - known as a Required Minimum Distribution - from your retirement accounts annually starting the year you turn age 70-1/2. Determining how much you are required to withdraw is an important issue in retirement planning. Use this calculator to determine your Required Minimum Distributions.

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Required Minimum Distribution - Definitions

Calculation notes - This minimum distribution calculator follows the latest IRS rules and life expectancy tables, which were finalized on April 16th, 2002. These new IRS regulations were optional in 2002 but became mandatory as of January 1st, 2003. If you have questions, please consult with your own tax advisor regarding your specific situation.
Account balance as of 12/31 of year prior to distribution year - This is the fair market value of your account as of the close of business on December 31st of the preceding year. For IRAs, no adjustments are made for contributions or distributions after that date. If you made a transfer or rollover from one account on or before December 31st of the preceding year and the funds were received by a new account in the next year, you will need to increase your December 31st fair market value by the amount that was transferred or rolled over and not included in the December 31 value of either account.
Your age as of 12/31 of distribution year - Use your age as of 12/31 for the year you are calculating the distribution.
Beneficiary age - Use the age your beneficiary will turn on their birthday for the year you are receiving the distribution.
Estimated rate of return - This is the expected rate of return on your account. This is only used to help project your future account balances (which of course will impact your required minimum distribution). The actual rate of return is largely dependant on the type of investments you select. From January 1970 to December 2007, the average compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 11.4% per year (source: www.standardandpoors.com).
Is your birthday after June 30th? - Check this box if your birthday is after June 30th. This is a factor in determining whether the IRS requires you to begin distributions when you are age 70 or 71. For calculating your first year's distribution, the IRS specifically states to use your age on your birthday in the year you turn 70 1/2. For example, if your birthday is between January 1st and June 30th, the first year of distribution would be at age 70. If your birthday is between July 1st and December 31st, the first year of distribution would be at age 71.
Is your sole beneficiary a spouse? - Check this box if your only beneficiary is your spouse. This can be a factor in determining whether the IRS uniform table must be used or if you are able to use the Joint Life Expectancy Table. The new IRS rules use a uniform table to calculate all life expectancies for determining a minimum distribution. The only exception to this rule is if the only beneficiary is a spouse and he or she is more than 10 years younger than the account owner. In this situation, the joint life expectancy table is used. The Joint Life expectancy table normally produces lower required distributions.

Investing and Retirement Planning: Certificates of deposit are one of the safest forms of saving money for the long term. Use this Bank CD Calculator to visually show you the long term return on investment you can expect based upon current bank CD rates. In addition, retirees and users planning for retirement can take advantage of our 401k Retirement Calculator.

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