Required Minimum Distribution (RMD)

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.

This Financial Calculator requires SUN's Java™ Plug-in. If you see this message you will need to download SUN's Java™ Plug-in. This can be done automatically by clicking the yellow bar at the top of your browser and choosing “Install ActiveX Control”.

You can also get SUN's Java™ Plug-in here: Get the Java™ Plug-in!

For more information about this Plug-in please visit: SUN's Java™ Plug-in
For more information these financial calculators please visit: Financial Calculators from KJE Computer Solutions, LLC


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 2007 to ensure compliance with IRS rules and regulations. If you have questions, please consult with your own tax advisor regarding your specific situation.
2009 RMD Suspension
Thanks to a new Federal law, there will be no Required Minimum Distribution for tax-deferred retirement accounts in 2009. This includes IRAs, 401k(s), 403(b)s and other defined contribution plans. This suspension allows the owner's and beneficiaries of these accounts to conserve their account balances. This law was passed in response to last year's sharp market downturn. This law does not affect RMDs required for 2008, even if the actual distribution happens in 2009.
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. 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.
Estimated 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). The actual rate of return is largely dependent on the type of investments you select. From January 1970 to December 2008, the average annual compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 9.7% (source: During this period, the highest 12-month return was 61%, from June 1982 through June 1983. The lowest 12-month return was -39%, which happened twice, once from September 1973 to September 1974 and again from November 2007 to November 2008. Savings accounts at a bank may pay as little as 1% or less but carry significantly lower risk of loss of principal balances.

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 funds and/or investment companies may charge.

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.