You cannot keep retirement funds in retirement accounts indefinitely. In general, you have to start taking withdrawals from your Traditional IRA, SIMPLE IRA, SEP IRA, or retirement plan account when you reach age 73. The Required Minimum Distribution (RMD) is the minimum amount you must withdraw from your account each year, but you can withdraw more than the minimum required amount.
The amount of the required minimum distribution is the account balance as of the end of the immediately preceding calendar year divided by a distribution period from the Uniform Lifetime Table (this is an IRS table that can be found in IRS Publication 590B, Distributions from Individual Retirement Arrangements).
This tool calculates the Required Minimum Distribution (RMD) for the owner of retirement account. NOTE: If your spouse is more than 10 years younger than you and is the sole beneficiary of your retirement account, do not use this tool; there is a more beneficial calculation you can use that stretches out the distributions over a longer period of time.
Tax Year
Retirement Account Balance
Taxpayer's Birthday
Taxpayer's Age
Required Minimum Distribution
0
This is the tax year that the RMD is taken. It defaults to the current tax year. This is only used to compute the age of the taxpayer at the end of the tax year.
This is the value of your retirement account on the last day of the previous tax year. Since you do not need to withdraw your RMD from each retirement account separately, you can enter the total value of all your retirement accounts to find your total RMD.
You can enter either the taxpayer's birthday here or you can enter the taxpayer's age in the following field. The birthday, if entered, is used to determine the taxpayer's age, which will be computed and automatically entered in the following field.
You can enter either the taxpayer's birthday in the previous field or you can enter the taxpayer's age here. If you enter the taxpayer's age, the taxpayer's birthday in the previous field will be erased.
This is the age of the taxpayer at the end of the year the RMD is taken (i.e., the end of the tax year). The intent of the RMD is for the taxpayer to withdraw all the funds from the retirement account during the taxpayer's lifetime; therefore, the taxpayer's age is needed to determine the number of years over which the RMDs should be taken.