No, owner passed before Required Beginning Date
Yes, owner was already taking RMDs
Estimated Annual RMD
Understanding Inherited IRA Distribution Rules
Calculating the Required Minimum Distribution (RMD) for an inherited IRA is significantly different from a standard Traditional IRA. Following the SECURE Act and SECURE Act 2.0, the rules depend heavily on your relationship to the deceased and when they passed away.
For most non-spouse beneficiaries, the "10-Year Rule" applies. This requires the account to be fully depleted by December 31st of the 10th year following the owner's death. However, if the original owner was already taking RMDs, you may also be required to take annual distributions during that 10-year period based on your own life expectancy.
Practical Example:
If you inherited an IRA worth $100,000 from a parent who was already taking RMDs, and your current age is 50. According to the IRS Single Life Expectancy Table, the factor for age 50 is 36.2.
Calculation: $100,000 / 36.2 = $2,762.43. This is your RMD for the first year.
Key Factors in the Calculation
Fair Market Value: You must use the account balance as of December 31st of the year prior to the distribution year.
Life Expectancy Factor: This is pulled from IRS Publication 590-B (Table I). Spouses have the option to use the Uniform Lifetime Table if they treat the IRA as their own.
The 10-Year Rule: If you are a Non-Eligible Designated Beneficiary (like a healthy adult child), you must empty the account within a decade. Recent IRS clarifications suggest annual RMDs are required during years 1-9 if the owner died after their Required Beginning Date (RBD).
What if I miss an RMD?
Failing to take an RMD can result in a significant excise tax. While the SECURE Act 2.0 reduced this penalty from 50% to 25% (and potentially 10% if corrected timely), it remains one of the most expensive mistakes in retirement planning. Always consult with a tax professional regarding inherited assets.
function calculateInheritedRMD() {
var balance = parseFloat(document.getElementById("iraBalance").value);
var age = parseInt(document.getElementById("beneficiaryAge").value);
var type = document.getElementById("beneficiaryType").value;
var ownerStarted = document.getElementById("ownerPassedRMD").value;
var resultDiv = document.getElementById("resultDisplay");
var output = document.getElementById("rmdOutput");
var note = document.getElementById("ruleNote");
var title = document.getElementById("resultTitle");
if (isNaN(balance) || isNaN(age) || balance <= 0 || age <= 0) {
alert("Please enter valid positive numbers for balance and age.");
return;
}
// Simplified IRS Single Life Expectancy Table (Table I) Mapping
// This provides a close approximation for common beneficiary ages
var factor = 0;
if (age = 18 && age 25 && age 40 && age 50 && age 60 && age 70 && age 80 && age <= 90) factor = 11.4 – (age – 80);
else factor = 5.0; // Late age floor
// Correcting factor based on IRS 2022 revised tables (approximate logic)
// Age 50 = 36.2, Age 60 = 27.1, Age 70 = 18.8
if (age == 50) factor = 36.2;
if (age == 60) factor = 27.1;
if (age == 70) factor = 18.8;
if (age == 80) factor = 11.4;
var annualRMD = balance / factor;
resultDiv.style.display = "block";
if (type === "nedb") {
if (ownerStarted === "no") {
title.innerText = "10-Year Rule Applies";
output.innerHTML = "No Annual RMD Required";
note.innerHTML = "Because the owner passed before their Required Beginning Date, you are likely subject to the 10-year rule without annual RMDs. However, the entire account must be distributed by December 31st of the 10th year following the death.";
} else {
title.innerText = "Estimated Annual RMD (10-Year Rule)";
output.innerHTML = "$" + annualRMD.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
note.innerHTML = "Since the owner was already taking RMDs, you must typically take annual distributions based on your life expectancy during years 1-9, and empty the account fully by year 10.";
}
} else {
title.innerText = "Required Minimum Distribution";
output.innerHTML = "$" + annualRMD.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
note.innerHTML = "As an Eligible Designated Beneficiary or Spouse, you can typically stretch distributions over your life expectancy. Factor used: ~" + factor.toFixed(1) + ".";
}
// Scroll to result
resultDiv.scrollIntoView({ behavior: 'smooth' });
}