IRS Uniform Lifetime Table (if spouse is more than 10 years younger and is sole beneficiary, or no spouse beneficiary)
IRS Single Life Expectancy Table (for non-spouse beneficiaries)
Your Required Minimum Distribution (RMD) is:
Understanding Inherited IRA RMDs and How to Calculate Them
When you inherit an Individual Retirement Account (IRA) from a loved one, it can be a significant financial asset. However, the IRS requires that you take distributions from this account, known as Required Minimum Distributions (RMDs), to ensure that the tax-deferred or tax-free growth of the account is eventually taxed. The rules for inherited IRAs can be complex, especially regarding RMD calculations.
Who Must Take Inherited IRA RMDs?
Generally, beneficiaries of traditional IRAs and beneficiaries of Roth IRAs (if the original owner died after their required beginning date) must take RMDs. The rules differ slightly for spouse beneficiaries versus non-spouse beneficiaries, and for beneficiaries who are considered "eligible designated beneficiaries."
Key Factors for Calculation
To calculate your inherited IRA RMD, you need two primary pieces of information:
Current Account Balance: This is the value of the inherited IRA as of December 31st of the year preceding the RMD year.
Your Life Expectancy: The IRS provides tables that determine the distribution period based on the beneficiary's age.
The Calculation Formula
The basic formula for calculating an inherited IRA RMD is:
RMD = Account Balance on December 31st of Prior Year / Life Expectancy Factor
Life Expectancy Tables
The IRS uses specific life expectancy tables to determine the distribution period. The most common tables are:
IRS Uniform Lifetime Table: This table is generally used by spouse beneficiaries who are not more than 10 years younger than the account owner and are the sole primary beneficiary. It can also be used by single beneficiaries.
IRS Single Life Expectancy Table: This table is used by non-spouse beneficiaries. The beneficiary can "stretch" the RMD over their own life expectancy.
Note: For simplicity in this calculator, we are providing options for the Uniform Lifetime Table and the Single Life Expectancy Table. Always consult the most current IRS publications or a tax professional for definitive guidance.
How to Use This Calculator
Current Account Balance: Enter the total value of the inherited IRA on December 31st of the previous year.
Your Age: Enter your age as of your birthday in the current year.
Life Expectancy Table: Select the appropriate table based on your relationship to the deceased and the deceased's distribution rules.
Click "Calculate RMD". The calculator will provide your estimated RMD for the current year.
Important Considerations
Death of Account Owner: The year of the account owner's death has special rules. Often, no RMD is required from the beneficiary for that year.
"Stretch" IRA: Non-spouse beneficiaries can often "stretch" the distributions over their lifetime, allowing the remaining funds to continue growing tax-deferred.
10-Year Rule: For deaths after 2019, some beneficiaries may be subject to a 10-year rule, where the entire account must be distributed by December 31st of the tenth year following the account owner's death. This calculator assumes you are taking annual RMDs based on life expectancy.
Spouse Beneficiaries: Spouses have unique options, including treating the inherited IRA as their own or delaying RMDs.
Consult a Professional: Tax laws are complex and can change. This calculator is for informational purposes only and is not a substitute for professional tax advice. Always consult with a qualified tax advisor or financial planner to ensure you are compliant with all IRS regulations.
function getLifeExpectancyFactor(age, tableType) {
// Simplified lookup for demonstration. In a real-world scenario,
// you'd use actual IRS tables, potentially from a more robust data source or API.
// These are approximate values for common ages.
var factors = {
"uniformLifetime": [
1.1, 1.0, 0.9, 0.8, 0.8, 0.7, 0.7, 0.6, 0.6, 0.6, 0.5, 0.5, 0.5, 0.5, 0.4, 0.4, 0.4, 0.4, 0.4, 0.3, 0.3, 0.3, 0.3, 0.3, 0.3, 0.3, 0.3, 0.2, 0.2, 0.2, 0.2, 0.2, 0.2, 0.2, 0.2, 0.2, 0.2, 0.2, 0.1, 0.1
],
"singleLife": [
53.1, 52.2, 51.3, 50.4, 49.5, 48.6, 47.7, 46.8, 45.9, 45.0, 44.1, 43.2, 42.3, 41.4, 40.5, 39.6, 38.7, 37.8, 36.9, 36.0, 35.1, 34.2, 33.3, 32.4, 31.5, 30.6, 29.7, 28.8, 27.9, 27.0, 26.1, 25.2, 24.3, 23.4, 22.5, 21.6, 20.7, 19.8, 18.9, 18.0, 17.1, 16.2, 15.3, 14.4, 13.5, 12.6, 11.7, 10.8, 9.9, 9.0, 8.1, 7.2, 6.3, 5.4, 4.5, 3.6, 2.7, 1.8, 0.9
]
};
var factorsArray;
if (tableType === "jointLifeOnly") {
factorsArray = factors.uniformLifetime;
} else { // singleLife
factorsArray = factors.singleLife;
}
if (age >= 0 && age = factorsArray.length) {
// For ages beyond the table, use the last factor (or a reasonable approximation)
// For Uniform Lifetime, it tends to plateau. For Single Life, it becomes very small.
if (tableType === "jointLifeOnly") return 0.1; // Very slow decline
return 0.9; // Approximate smallest factor for Single Life in this simplified table
}
return null; // Invalid age
}
function calculateRmd() {
var accountBalance = parseFloat(document.getElementById("accountBalance").value);
var age = parseInt(document.getElementById("age").value);
var tableType = document.getElementById("lifeExpectancyTable").value;
var rmdValueElement = document.getElementById("rmdValue");
if (isNaN(accountBalance) || accountBalance < 0) {
rmdValueElement.innerText = "Please enter a valid account balance.";
return;
}
if (isNaN(age) || age <= 0) {
rmdValueElement.innerText = "Please enter a valid age.";
return;
}
var factor = getLifeExpectancyFactor(age, tableType);
if (factor === null) {
rmdValueElement.innerText = "Factor not found for this age.";
return;
}
if (factor === 0) { // Avoid division by zero
rmdValueElement.innerText = "N/A (Factor is 0)";
return;
}
var rmd = accountBalance / factor;
rmdValueElement.innerText = "$" + rmd.toFixed(2);
}