Inherited IRA Distribution Calculator

Introduction

Based on the information provided, this report shows the required minimum distribution (RMD) amount, if any, for withdrawal this calendar year.  Where annual RMDs do not apply based on the information provided, the report indicates the date by which all funds must be distributed from the account. This Inherited IRA Distribution Calculator is intended to serve as an informational tool only, and should not be construed as legal, investment, or tax advice. You should discuss your situation with your investment planner, tax advisor, or an estate planning professional before acting on the information you receive from the Inherited IRA Distribution Calculator, and to identify specific issues not addressed by the Calculator.

Before deciding how to proceed with an inherited IRA, an investor should consider various factors including, but not limited to, age, account type, and relationship of the account holder to the beneficiary.

Please note:

• This calculator assumes the assets have been transferred from the original retirement account to an inherited IRA in the name of the beneficiary.
• This calculator uses the latest IRS life expectancy tables to calculate annual RMDs where applicable.
• Beneficiaries are responsible for withdrawing the correct amount of RMDs from the inherited IRA within the appropriate time period in order to avoid IRS penalties. The time of the first required distribution will depend on the beneficiary type and in some instances, whether the original account owner died before, on, or after the required beginning date (RBD). Consult your investment planner, tax advisor, or an estate planning professional regarding the time of your first required distribution.
• If the IRA owner died after his/her RBD, the IRA owner’s RMD must be withdrawn for the calendar year if it was not withdrawn prior to the IRA owner’s death. This Calculator should not be used to determine this RMD after the death of the original account owner; it is only used to determine subsequent RMDs for the beneficiary. This Calculator should not be used to determine this RMD for the year of death after the death of the original account owner; it is only used to determine subsequent RMDs for the beneficiary.
• This report has been provided by DST Retirement Solutions, LLC, an SS&C company.

Calculations

• You are responsible for the calculation of your Inherited IRA RMD and the accuracy of your tax return. Withdrawals of taxable amounts may be subject to ordinary income tax. You should periodically review your overall tax plan with your tax advisor.
• If the original account owner passed away before reaching age 72 (or age 70½ if born before July 1, 1949), this tool will treat the original owner as not having reached his or her RBD.
• If the original account owner passed away after reaching age 72 (or age 70½ if born before July 1, 1949), this tool will treat the original owner as having reached his or her RBD.
• If the account owner passed away in 2020 or beyond and had reached RBD, this tool will calculate the RMD based on the life expectancy of the individual (account owner or Eligible Designated Beneficiary) with the longer life expectancy. Given recent changes included in the SECURE Act you should review these results with your Tax Advisor before taking any action on your accounts.
• The Calculator does not consider the effect of taxes on the RMD withdrawn and the amount owed in taxes on the withdrawal is not calculated.
• The Inherited IRA RMD Calculator’s results may vary with each use and may change over time due to updates to the Calculator or because of changes in personal circumstances or market conditions. Consider returning to the Calculator at least annually to calculate the RMD for the current year.