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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.
Are you sure you're required to take an RMD? If you are a qualified retirement plan participant and you are still working for the plan sponsor, you are not a 5% or more owner of the company sponsoring the plan, and the plan allows for a delay of RMDs, you may be able to delay taking an RMD until the April 1st of the year following the year after you retire. You will need to speak with your plan sponsor and/or tax advisor to make this determination.
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* Please be sure to include the entire account fair market value. The year-end account value for the following assets are some examples of values that might not be included in a year-end statement value but should be included for RMD purposes:
- Non-marketable values, certain “penny stocks”, or other unpriced securities.
- The value of any recharacterizations that took place after 12/31 of the year prior to distribution.
- The value of any 60-day rollovers not completed by 12/31 of the year prior to the distribution.
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Definitions
- Calculation notes
- This 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. This calculator was last updated January 2011 to ensure compliance with IRS rules and regulations. If you have questions, please consult with your own tax advisor regarding your specific situation. If you are under 75 and this RMD is from a 403(b) plan, you may not be required to take distributions on the balance in your account before 1987 until you reach age 75. You may need to contact a financial planner or CPA to determine if this exception applies to your RMD.
- Account fair market value 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.
- 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.
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This RMD was calculated using the information indicated above. As a matter of policy, Oppenheimer & Co. Inc. does not provide tax advice and we recommend that you speak with your own independent tax and/or legal advisor regarding the distribution of your annual required minimum distribution.
This RMD calculator is not able to calculate RMDs for participants in a Defined Benefit Plan. If you are a participant in a Defined Benefit Plan, you must obtain your RMD amount from your plan administrator and/or the actuary for the plan.
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