Fidelity IRA Required Minimum Distribution (RMD) Calculator
What is a Fidelity IRA Minimum Distribution?
A Required Minimum Distribution (RMD) is the smallest amount of money that the IRS requires you to withdraw from your Traditional IRA, SEP IRA, or SIMPLE IRA annually once you reach a certain age. According to the SECURE Act 2.0, if you reached age 72 after December 31, 2022, your required beginning age for RMDs is 73.
Fidelity and other financial institutions use the IRS Uniform Lifetime Table to determine your distribution period based on your life expectancy. Failing to take your RMD can result in heavy tax penalties, often up to 25% of the amount not withdrawn (which may be reduced to 10% if corrected promptly).
How to Calculate Your RMD
The math behind the RMD is straightforward: you take the fair market value of your retirement account as of December 31 of the previous year and divide it by a distribution factor provided by the IRS.
Realistic Example:
If John has a Fidelity Traditional IRA worth $400,000 on Dec 31, 2023, and he turns 75 in 2024, the IRS distribution factor for age 75 is 24.6.
Calculation: $400,000 / 24.6 = $16,260.16
John must withdraw at least $16,260.16 by Dec 31, 2024.
Important RMD Deadlines
First RMD: You can delay your first RMD until April 1 of the year following the year you turn 73. However, if you delay, you will have to take two distributions in that same year.
Subsequent Years: For every year after your first RMD, the deadline is December 31.
What Accounts Require RMDs?
RMD rules generally apply to Traditional IRAs, Rollover IRAs, SEP IRAs, SIMPLE IRAs, 401(k) plans, 403(b) plans, and 457(b) plans. Since 2024, Roth 401(k) accounts are no longer subject to RMDs during the owner's lifetime. Roth IRAs never require RMDs for the original owner.
function calculateRMD() {
var balance = document.getElementById("iraBalance").value;
var age = document.getElementById("ownerAge").value;
var resultBox = document.getElementById("rmdResultBox");
var resultText = document.getElementById("resultText");
if (!balance || balance <= 0 || !age || age <= 0) {
alert("Please enter a valid balance and age.");
return;
}
balance = parseFloat(balance);
age = parseInt(age);
// IRS Uniform Lifetime Table factors (2022 onwards)
var factors = {
72: 27.4, 73: 26.5, 74: 25.5, 75: 24.6, 76: 23.7,
77: 22.9, 78: 22.0, 79: 21.1, 80: 20.2, 81: 19.4,
82: 18.5, 83: 17.7, 84: 16.8, 85: 16.0, 86: 15.2,
87: 14.4, 88: 13.7, 89: 12.9, 90: 12.2, 91: 11.5,
92: 10.8, 93: 10.1, 94: 9.5, 95: 8.9, 96: 8.4,
97: 7.8, 98: 7.3, 99: 6.8, 100: 6.4, 101: 6.0,
102: 5.6, 103: 5.2, 104: 4.9, 105: 4.6, 110: 3.5, 115: 2.9, 120: 2.0
};
// SECURE ACT 2.0 Logic: Age 73 is the start for most current retirees
if (age < 72) {
resultBox.style.display = "block";
resultText.innerHTML = "Result: Based on current laws, RMDs generally begin at age 73. You do not have a required distribution for the age entered.";
return;
}
var factor = 0;
if (age >= 120) {
factor = 2.0;
} else if (factors[age]) {
factor = factors[age];
} else {
// Linear approximation for missing ages in the lookup logic if needed,
// though most common ages are covered.
var closestAge = Object.keys(factors).sort(function(a, b) {
return Math.abs(age – a) – Math.abs(age – b);
})[0];
factor = factors[closestAge];
}
var rmdAmount = balance / factor;
var formattedRMD = rmdAmount.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
resultBox.style.display = "block";
resultText.innerHTML = "For age " + age + ", the IRS Distribution Factor is " + factor + "." +
"Your estimated annual RMD is: $" + formattedRMD + "" +
"Note: This is based on the Uniform Lifetime Table. If your spouse is more than 10 years younger and is the sole beneficiary, a different table (Joint Life Expectancy) may apply.";
}