Calculating the Required Minimum Distribution (RMD) for an inherited IRA depends heavily on when the original owner passed away and your relationship to them. Under the SECURE Act, which went into effect on January 1, 2020, rules for non-spouse beneficiaries shifted significantly.
The 10-Year Rule vs. Life Expectancy
If you inherited an IRA after December 31, 2019, and you are a "designated beneficiary" (like a child or grandchild), you generally must empty the entire account by the end of the 10th year following the year of the owner's death. In many cases, no specific annual RMD is required during those 10 years, but the balance must be zero by the 10-year deadline.
However, "Eligible Designated Beneficiaries" (EDBs) and those who inherited before 2020 may still use the Life Expectancy Method (often called the Stretch IRA), where a specific amount must be withdrawn annually based on IRS life expectancy tables.
Who Qualifies as an Eligible Designated Beneficiary (EDB)?
A surviving spouse.
A minor child of the account owner (until they reach the age of majority).
A disabled or chronically ill individual.
An individual not more than 10 years younger than the deceased owner.
Example Calculation
Imagine you inherited a $250,000 IRA from a parent who passed away in 2018 (pre-SECURE Act). If you are 50 years old, the IRS Single Life Expectancy Table provides a factor (e.g., 36.2). Your RMD would be $250,000 divided by 36.2, resulting in an annual withdrawal requirement of $6,906.08.
function calculateInheritedRMD() {
var balance = parseFloat(document.getElementById('iraBalance').value);
var age = parseInt(document.getElementById('beneficiaryAge').value);
var deathYear = parseInt(document.getElementById('yearOfDeath').value);
var type = document.getElementById('beneficiaryType').value;
var resultBox = document.getElementById('resultBox');
var rmdResult = document.getElementById('rmdResult');
var factorResult = document.getElementById('factorResult');
var rmdNote = document.getElementById('rmdNote');
var rmdTitle = document.getElementById('rmdTitle');
if (isNaN(balance) || isNaN(age) || balance <= 0 || age <= 0) {
alert("Please enter valid numbers for balance and age.");
return;
}
resultBox.style.display = "block";
// IRS Single Life Expectancy Table (Simplified for standard ages 18-90)
// Formula approximation for typical IRS Table 1 values
var factor = 0;
if (age < 18) factor = 67.0;
else if (age <= 25) factor = 60.0 – (age – 25) * -1;
else if (age <= 35) factor = 50.5 – (age – 35) * 1;
else if (age <= 45) factor = 41.0 – (age – 45) * 1;
else if (age <= 55) factor = 31.6 – (age – 55) * 1;
else if (age <= 65) factor = 22.9 – (age – 65) * 1;
else if (age <= 75) factor = 14.8 – (age – 75) * 1;
else if (age <= 85) factor = 8.1 – (age – 85) * 1;
else factor = 5.0;
// Refining factor based on actual IRS Table 1 (Pub 590-B) samples
var table = {
20: 64.3, 25: 59.4, 30: 54.8, 35: 50.2, 40: 45.7,
45: 41.0, 50: 36.2, 55: 31.6, 60: 27.1, 65: 22.9,
70: 18.8, 75: 14.8, 80: 11.4, 85: 8.1, 90: 5.7
};
// Find closest or interpolate
var keys = Object.keys(table).map(Number);
var closest = keys.reduce(function(prev, curr) {
return (Math.abs(curr – age) < Math.abs(prev – age) ? curr : prev);
});
factor = table[closest] – (age – closest) * 0.9; // Rough linear adjustment
if (factor = 2020);
var isNonSpouse = (type === 'nonspouse');
if (isPostSECURE && isNonSpouse) {
rmdTitle.innerText = "10-Year Rule Applies:";
rmdResult.innerText = "No Specific Annual RMD";
factorResult.innerText = "Full distribution required by Dec 31 of Year 10.";
rmdNote.innerHTML = "Under the SECURE Act, most non-spouse beneficiaries must empty the account within 10 years. While the IRS recently clarified that if the owner had already reached RMD age, you may need to take annual distributions, generally the '10-year rule' dictates the full exit timeline rather than a life expectancy calculation.";
} else {
var rmdAmount = balance / factor;
rmdTitle.innerText = "Estimated Annual RMD:";
rmdResult.innerText = "$" + rmdAmount.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
factorResult.innerText = "IRS Life Expectancy Factor: " + factor.toFixed(1);
if (type === 'spouse') {
rmdNote.innerHTML = "As a spouse, you have the most flexibility. You can treat the IRA as your own, or remain a beneficiary and use the life expectancy method shown above.";
} else if (type === 'edb') {
rmdNote.innerHTML = "As an Eligible Designated Beneficiary, you are permitted to use the 'Stretch' method, withdrawing based on your life expectancy factor regardless of the 2020 SECURE Act changes.";
} else {
rmdNote.innerHTML = "Since the inheritance occurred pre-2020, you are grandfathered into the 'Stretch' IRA rules using the Single Life Expectancy method.";
}
}
}