Beneficiary Required Minimum Distributions (RMD) - Eligible Designated Beneficiary

This calculator follows the SECURE Act of 2019 Required Minimum Distribution (RMD) rules and the CARES Act of 2020 RMD waiver. If you have questions, please consult with your own tax advisor regarding your specific situation. The CARES Act of 2020 provided a temporary waiver of RMDs for retirement plans and accounts for 2020. This includes direct contribution plans such as 401k, 403b, 457b plans and IRAs. RMDs are also waived for IRA owners who turned 70 1/2 in 2019 and were required to take an RMD by April 1, 2020 and have not yet done so.
This calculator has been updated for SECURE 2.0 of 2022, the SECURE Act of 2019 and the CARES Act of 2020. Future IRS published procedures may have an impact on enforcement and interpretation of these Acts.
A proposed rule for the SECURE Act was released on February 23, 2022. When finalized the new rule will change the way the RMDs are treated for non-spouse Designated Beneficiaries that use the SECURE Act 10-year rule for distributions. It is likely this new rule will be retroactive to all of 2023. Originally the required distributions under the 10-year rule required all funds to be withdrawn by the end of the year following the 10th anniversary of the account owner's death without regard to RMDs.
The proposed rule 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 The remainder would then be required to be withdrawn in its entirety in year 10. This calculator follows the proposed rule with RMDs for year 1 through 9 if the account owner had required distributions before their death. All remaining funds are then required to be withdrawn in year 10.
As of 3/31/2023 the proposed rule has not been finalized. It is strongly advised you seek professional guidance in all RMDs and especially with beneficiary RMDs.
If the account owner's age at year-end was younger than the beneficiary age at year-end, 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. Other than using the account owner's age at death, the calculation is identical to the one stated above.
It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that investment funds and/or investment companies may charge.