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.
Definitions
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.
Your age as of 12/31 of distribution year
Use your age as of 12/31 for the year you are calculating the distribution.
Spouse beneficiary age
Use the age your spouse will turn on their birthday for the year you are receiving the distribution.
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).
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 spouse your only beneficiary?
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 your sole beneficiary is your 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.
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