Beneficiary Required Minimum Distributions (RMD) - Advanced Options

Calculation notes

This calculator has been updated for SECURE 2.0 of 2022, the SECURE Act of 2019, the CARES Act of 2020 and IRS Notices through December 31^st, 2025. Future IRS notices, updated rules and procedures may have an impact on enforcement and interpretation of these Acts and notices.

This calculator is designed for the SECURE Act of 2019 new RMD rules that apply to non-spouse Designated Eligible Beneficiaries as part of The SECURE Act of 2019. Using the additional RMD options available is a choice made when the account is inherited. Non-spouse Eligible Designated Beneficiaries include a child of the account owner that is under age 21 or are permanently disabled or are chronically ill. A child, once they reach 21, is no longer considered an Eligible Designated Beneficiary and the 10-year distribution rule will apply starting in the year they turn 21. For more information please see Modification of Required Distribution Rules for Designated Beneficiaries.

This calculator uses the pre-SECURE Act rules when an original account owner died on or before 12/31/2019.

The pre-SECURE Act RMD calculations are used if the beneficiary is 10 or less years younger than the original account owner or an if the beneficiary is classified as an Eligible Designated Beneficiary.

The SECURE Act of 2019 doesn't change a spouse's option to treat inherited account as his or her own. In this case, no distributions are required until the year in which the spouse reaches age 75 (or 70 1/2 if you were born before 7/1/1949, 72 if you were born 7/1/1949 to 12/31/1951, 73 if you were born 1/1/1951 to 1/1/1960). This calculator assumes that a spouse will wish to treat an inherited IRA as their own.

If the account owner was younger than the beneficiary, and it was past the required begin date for required minimum distributions when the account owner died, the beneficiary can choose to use the account owner's life expectancy to calculate Required Minimum Distributions (RMD). In this special case, the result will always produce a lower RMD. If this situation occurs, this calculator will use the account owner's age to determine the applicable life expectancy when calculating RMDs.

When using the 10-year rule, the IRS requires a beneficiary to withdraw an RMD for year 1 through 9 if the original account owner had already begun taking RMDs themselves. The remainder is required to be withdrawn in its entirety in year 10.

This calculator only applies to the first-generation beneficiary not a second-generation beneficiary. In the event of the first beneficiary's death, the second beneficiary should contact their own tax advisor for information on the appropriate RMD calculation.

Life expectancy calculations

For non-spouse beneficiaries the IRS Single Life Expectancy table value is found the beneficiary's age on December 31^st of the year following the owner's death. Future distributions subtract one for each year that has passed from the original life expectancy. It is not allowed to lookup or "recalculate" a new starting life expectancy after distributions have begun. This calculator assumes that a surviving spouse will choose to treat the inherited account as their own. In this situation the IRS Uniform Life Expectancy table is used. A spouse recalculates their life expectancy each year by looking up the value in the IRS Uniform Life Expectancy table based on that year's age.

If the account owner was younger than the beneficiary, and it was past the required begin date for distributions when the account owner died, the beneficiary can choose to use the account owner's life expectancy to calculate Required Minimum Distributions (RMD). In this special case, the result will always produce a lower RMD. If this situation occurs, this calculator will use the account owner's age when calculating RMDs. Other than using the account owner's age at death, the calculation is identical.

Year of RMD

The year to calculate the Required Minimum Distribution (RMD). This is typically the current year. Change the year to calculate a previous year's RMD.

Beneficiary type

This calculator allows you to choose they type of beneficiary for the calculation. Certain options are only available if you qualify (such as the child of the account owner).

Beneficiary's name

Enter the beneficiary's name if you would like it to appear on the report.

Owner's name

Enter the account owner's name if you would like it to appear on the report.

Name of account

Please enter the name of the account for this analysis.

Beneficiary's birthdate

Enter the beneficiary's birthdate. This is used for calculating life expectancy.

Hypothetical 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). La tasa de rendimiento real depende en gran medida de los tipos de inversiones que elija. El índice Standard & Poor's 500® (S&P 500®) durante los últimos 10 años que finalizaron el 31 de diciembre de 2025, tuvo una tasa de rendimiento compuesta anual de 14.8 %, con la reinversión de dividendos. Desde el 1 de enero de 1970 hasta el 31 de diciembre de 2025, la tasa de rendimiento compuesta anual promedio del S&P 500®, con la reinversión de dividendos, fue aproximadamente del 11.3 % (fuente: www.spglobal.com). Desde 1970, el rendimiento más alto a 12 meses fue del 61 % (desde junio de 1982 hasta junio de 1983). El rendimiento más bajo a 12 meses fue del -43 % (desde marzo de 2008 hasta marzo de 2009). Las cuentas de ahorro en una institución financiera pagan menos, pero conllevan un riesgo significativamente menor de pérdida de saldos de capital.

Es fundamental tener en cuenta que estos escenarios son meramente hipotéticos y que las tasas de rendimiento futuras no pueden preverse con certeza. Además, las inversiones que ofrecen tasas de rendimiento más altas suelen estar expuestas a un mayor riesgo y volatilidad. La tasa real de rendimiento de las inversiones puede variar significativamente con el tiempo, en especial en las inversiones a largo plazo. También puede implicar la posible pérdida de capital invertido. No es posible invertir directamente en un índice y la tasa de rendimiento compuesta mencionada anteriormente no incluye los cargos por ventas ni otras tarifas que imponen los fondos de inversión o las empresas de inversión.

Amount Subject to RMD

This is the fair market value of your account. For RMD calculations, the amount to use is the balance on December 31^st of the previous year. For example, to determine the RMD for 2020 the account balance on 12/31/2019 would be used.

Date of the original account owner's death

Please enter the date of the original account owner's death.

Plan type

Please enter the plan type. The plan type can affect distributions if the account owner is younger than the beneficiary and RMDs have already begun.

Original account owner's birthdate

Please enter the original account owner's birthdate.