Required Minimum Distribution Calculator For 401(K) And IRA
Required Minimum Distributions (RMD) generally are minimum amounts that a retirement plan account owner must withdraw annually starting with the year that he or she reaches 70 ½ years of age or, if later, the year in which he or she retires. However, if the retirement plan account is an IRA or the account owner is a 5% owner of the business sponsoring the retirement plan, the Required Minimum Distributions must begin once the account holder is age 70 ½, regardless of whether he or she is retired.
Use embedded calculator below or go directly to the calculator by clicking on this link: RMD Calculator.
Retirement plan participants and IRA owners are responsible for taking the correct amount of Required Minimum Distributions on time every year from their accounts, and they face stiff penalties for failure to take Required Minimum Distributions.
When a retirement plan account owner dies before Required Minimum Distributions have begun, different RMD rules apply to the beneficiary of the account or IRA. Generally, the entire amount of the owner’s benefit must be distributed to the beneficiary who is an individual either (1) within 5 years of the owner’s death, or (2) over the life of the beneficiary starting no later than one year following the owner’s death. See Publication 590, Individual Retirement Arrangements (IRAs), for complete details on when beneficiaries must start receiving Required Minimum Distributions.
What types of retirement plans require minimum distributions?
The RMD rules apply to all employer sponsored retirement plans, including profit-sharing plans, 401(k) plans, 403(b) plans, and 457(b) plans. The RMD rules also apply to traditional IRAs and IRA-based plans such as SEPs, SARSEPs, and SIMPLE IRAs.
The RMD rules also apply to Roth 401(k) accounts. However, the RMD rules do not apply to Roth IRAs while the owner is alive.
When must I receive required minimum distribution from my IRA or 401k?
You must take your first required minimum distribution for the year in which you turn age 70½. However, the first payment can be delayed until April 1 of the year following the year in which you turn 70½. For all subsequent years, including the year in which you were paid the first RMD by April 1, you must take the RMD by December 31 of the year.
A different deadline may apply to RMDs from pre-1987 contributions to a 403(b) plan.
This calculator is for informational purposes only and does not constitute, and should not be construed as, professional, legal or tax advice. Do NOT rely on the results from this calculator to make financial decisions. The results are merely an estimate. Situations vary and the tax laws change regularly. You should contact your tax or legal advisor for advice regarding your situation.
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