Inherited IRA RMD Calculator
Account Information
Inherited IRA Required Minimum Distributions
When you inherit an Individual Retirement Account (IRA), you become subject to specific distribution requirements known as Required Minimum Distributions (RMDs). These mandatory withdrawals ensure that inherited retirement funds are distributed according to IRS regulations and prevent indefinite tax deferral.
The calculation method depends on several factors including your relationship to the original account owner, the owner's age at death, and whether distributions had already begun. Spouse beneficiaries typically have more flexible options, while non-spouse beneficiaries are generally subject to the 10-year distribution rule established by the SECURE Act of 2019.
Understanding your RMD obligations is crucial for avoiding the substantial 50% penalty imposed on missed or insufficient distributions. Our calculator helps you determine the correct amount based on current IRS life expectancy tables and distribution rules.
How to Use the Inherited IRA RMD Calculator
Step 1: Enter Account Balance Information
Input the fair market value of the inherited IRA as of December 31st of the previous year. This figure should be available on your year-end account statement from the financial institution holding the account. Ensure accuracy as this forms the foundation of your RMD calculation.
Step 2: Select Your Beneficiary Classification
Choose your relationship to the original account owner from the dropdown menu. Surviving spouses have different distribution options compared to individual non-spouse beneficiaries, multiple beneficiaries, or trusts. Your classification determines which IRS life expectancy table and distribution method applies to your situation.
Step 3: Provide Essential Date Information
Enter the original account owner's birth and death dates, along with your own birth date. These dates determine age-related factors crucial for calculating life expectancy and establishing whether the 10-year rule applies. The distribution year field should reflect the tax year for which you're calculating the RMD.
Step 4: Review Your Calculated Distribution
After clicking the calculate button, review your required minimum distribution amount and the detailed calculation breakdown. The results show the specific formula used, life expectancy factor applied, and distribution percentage. Use this information to plan your withdrawal strategy and ensure compliance with IRS requirements.