(This question is only relevant for deaths in 2020 or later.)
(This is relevant for non-EDB beneficiaries for deaths in 2020 or later.)
var lifeExpectancyTable = {
10: 73.7, 11: 72.7, 12: 71.7, 13: 70.7, 14: 69.7, 15: 68.7, 16: 67.7, 17: 66.7, 18: 65.7, 19: 64.7,
20: 63.7, 21: 62.7, 22: 61.7, 23: 60.7, 24: 59.7, 25: 58.7, 26: 57.7, 27: 56.7, 28: 55.7, 29: 54.7,
30: 53.7, 31: 52.7, 32: 51.7, 33: 50.7, 34: 49.8, 35: 48.8, 36: 47.8, 37: 46.8, 38: 45.8, 39: 44.9,
40: 43.9, 41: 42.9, 42: 41.9, 43: 41.0, 44: 40.0, 45: 39.0, 46: 38.0, 47: 37.1, 48: 36.1, 49: 35.1,
50: 34.2, 51: 33.2, 52: 32.2, 53: 31.3, 54: 30.3, 55: 29.4, 56: 28.4, 57: 27.5, 58: 26.5, 59: 25.6,
60: 24.7, 61: 23.7, 62: 22.8, 63: 21.9, 64: 21.0, 65: 20.1, 66: 19.2, 67: 18.3, 68: 17.5, 69: 16.6,
70: 15.8, 71: 14.9, 72: 14.1, 73: 13.3, 74: 12.5, 75: 11.8, 76: 11.0, 77: 10.3, 78: 9.6, 79: 8.9,
80: 8.2, 81: 7.6, 82: 7.0, 83: 6.4, 84: 5.8, 85: 5.3, 86: 4.8, 87: 4.4, 88: 3.9, 89: 3.5,
90: 3.1, 91: 2.8, 92: 2.5, 93: 2.2, 94: 2.0, 95: 1.7, 96: 1.5, 97: 1.3, 98: 1.1, 99: 0.9,
100: 0.8, 101: 0.6, 102: 0.5, 103: 0.4, 104: 0.3, 105: 0.2, 106: 0.1, 107: 0.1, 108: 0.1, 109: 0.1,
110: 0.1, 111: 0.1, 112: 0.1, 113: 0.1, 114: 0.1, 115: 0.1, 116: 0.1, 117: 0.1, 118: 0.1, 119: 0.1,
120: 0.1
};
function toggleDeceasedRMDsVisibility() {
var dodYear = parseInt(document.getElementById('dodYear').value);
var isEDB_val = document.querySelector('input[name="isEDB"]:checked').value;
var deceasedRMDsSection = document.getElementById('deceasedRMDsSection');
var deceasedAgeSection = document.getElementById('deceasedAgeSection');
if (dodYear >= 2020 && isEDB_val === 'no') {
deceasedRMDsSection.style.display = 'block';
toggleDeceasedAgeVisibility(); // Re-evaluate deceased age visibility
} else {
deceasedRMDsSection.style.display = 'none';
deceasedAgeSection.style.display = 'none'; // Hide deceased age if not applicable
}
}
function toggleDeceasedAgeVisibility() {
var deceasedWasTakingRMDs_val = document.querySelector('input[name="deceasedWasTakingRMDs"]:checked');
var deceasedAgeSection = document.getElementById('deceasedAgeSection');
if (deceasedWasTakingRMDs_val && deceasedWasTakingRMDs_val.value === 'yes') {
deceasedAgeSection.style.display = 'block';
} else {
deceasedAgeSection.style.display = 'none';
}
}
function calculateRMD() {
var beneficiaryAge = parseFloat(document.getElementById('beneficiaryAge').value);
var iraBalance = parseFloat(document.getElementById('iraBalance').value);
var dodYear = parseInt(document.getElementById('dodYear').value);
var isEDB_val = document.querySelector('input[name="isEDB"]:checked').value;
var deceasedWasTakingRMDs_val = document.querySelector('input[name="deceasedWasTakingRMDs"]:checked');
var deceasedAgeAtDeath = parseFloat(document.getElementById('deceasedAgeAtDeath').value);
var rmdResult = document.getElementById('rmdResult');
var currentYear = new Date().getFullYear();
var resultHTML = "";
// Input validation
if (isNaN(beneficiaryAge) || beneficiaryAge <= 0) {
rmdResult.innerHTML = "Please enter a valid Beneficiary's Current Age.";
return;
}
if (isNaN(iraBalance) || iraBalance < 0) {
rmdResult.innerHTML = "Please enter a valid IRA Account Balance.";
return;
}
if (isNaN(dodYear) || dodYear currentYear) {
rmdResult.innerHTML = "Please enter a valid Year of Deceased Owner's Death (must be current year or earlier).";
return;
}
if (beneficiaryAge 120) { // Life expectancy table range
rmdResult.innerHTML = "Beneficiary age must be between 10 and 120 for this calculator's life expectancy table.";
return;
}
// Case A: Death before 2020 (Pre-SECURE Act)
if (dodYear < 2020) {
var leFactor = lifeExpectancyTable[beneficiaryAge];
if (!leFactor) {
rmdResult.innerHTML = "Life expectancy factor not found for beneficiary age " + beneficiaryAge + ". Please consult a tax professional.";
return;
}
var rmd = iraBalance / leFactor;
resultHTML = "Your RMD for " + currentYear + " is: $" + rmd.toFixed(2) + "";
resultHTML += "This is based on your life expectancy as a non-spouse beneficiary under pre-SECURE Act rules. You will continue to take RMDs annually based on your recalculated life expectancy.";
}
// Case B: Death in 2020 or later (Post-SECURE Act)
else {
// Sub-Case B1: Beneficiary is an EDB
if (isEDB_val === 'yes') {
var leFactor = lifeExpectancyTable[beneficiaryAge];
if (!leFactor) {
rmdResult.innerHTML = "Life expectancy factor not found for beneficiary age " + beneficiaryAge + ". Please consult a tax professional.";
return;
}
var rmd = iraBalance / leFactor;
resultHTML = "Your RMD for " + currentYear + " is: $" + rmd.toFixed(2) + "";
resultHTML += "This is based on your life expectancy as an Eligible Designated Beneficiary (EDB). You will continue to take RMDs annually based on your recalculated life expectancy.";
}
// Sub-Case B2: Beneficiary is NOT an EDB (10-Year Rule)
else {
var endOf10YearPeriod = dodYear + 10;
resultHTML = "As a non-Eligible Designated Beneficiary (non-EDB) for a death in " + dodYear + " or later, your inherited IRA is subject to the 10-Year Rule.";
if (currentYear > endOf10YearPeriod) {
resultHTML += "The 10-year distribution period for this inherited IRA has passed. The entire account balance should have been distributed by December 31, " + endOf10YearPeriod + ".";
} else if (currentYear === endOf10YearPeriod) {
resultHTML += "The entire account balance of $" + iraBalance.toFixed(2) + " must be distributed by December 31 of this year, as it is the 10th year following the owner's death.";
} else { // currentYear < endOf10YearPeriod
if (!deceasedWasTakingRMDs_val) { // Should not happen with radio buttons, but for safety
rmdResult.innerHTML = "Please specify if the deceased owner was taking RMDs.";
return;
}
var deceasedWasTakingRMDs = deceasedWasTakingRMDs_val.value;
if (deceasedWasTakingRMDs === 'no') {
resultHTML += "No RMD is required for " + currentYear + ". The deceased owner died before their Required Beginning Date (RBD).";
resultHTML += "The entire account balance must be distributed by December 31, " + endOf10YearPeriod + ".";
} else { // deceasedWasTakingRMDs === 'yes'
if (isNaN(deceasedAgeAtDeath) || deceasedAgeAtDeath <= 0) {
rmdResult.innerHTML = "Please enter a valid Deceased Owner's Age at Death.";
return;
}
if (deceasedAgeAtDeath 120) { // Life expectancy table range
rmdResult.innerHTML = "Deceased owner's age at death must be between 10 and 120 for this calculator's life expectancy table.";
return;
}
var yearsSinceDeath = currentYear – dodYear;
var initialDeceasedLEFactor = lifeExpectancyTable[deceasedAgeAtDeath];
if (!initialDeceasedLEFactor) {
rmdResult.innerHTML = "Life expectancy factor not found for deceased owner's age " + deceasedAgeAtDeath + ". Please consult a tax professional.";
return;
}
// The factor decreases by 1 for each year *after* the year of death.
// The first RMD year for the beneficiary is the year *after* death.
// So, for currentYear, the factor is initialLE – (currentYear – (dodYear + 1))
var currentDeceasedLEFactor = initialDeceasedLEFactor – (yearsSinceDeath – 1);
if (currentDeceasedLEFactor <= 0) {
resultHTML += "The calculated life expectancy factor for the deceased is zero or negative. This indicates a complex scenario or that the 10-year period is nearing its end. Please consult a tax professional.";
resultHTML += "The entire account balance must be distributed by December 31, " + endOf10YearPeriod + ".";
} else {
var rmd = iraBalance / currentDeceasedLEFactor;
resultHTML += "Your RMD for " + currentYear + " is: $" + rmd.toFixed(2) + "";
resultHTML += "This is based on the deceased owner's remaining life expectancy, as they died after their Required Beginning Date (RBD).";
resultHTML += "You must continue taking annual RMDs based on the deceased's remaining life expectancy until the 10th year. The entire account balance must be distributed by December 31, " + endOf10YearPeriod + ".";
}
}
}
}
}
rmdResult.innerHTML = resultHTML;
}
// Initial call to set visibility based on default values
document.addEventListener('DOMContentLoaded', function() {
toggleDeceasedRMDsVisibility();
});
Understanding Non-Spouse Inherited IRA RMDs
Inheriting an Individual Retirement Account (IRA) can be a significant financial event, but it comes with complex rules, especially regarding Required Minimum Distributions (RMDs) for non-spouse beneficiaries. The rules changed dramatically with the SECURE Act of 2019 and further clarifications in 2022, making it crucial to understand your obligations to avoid hefty penalties.
What is an RMD?
An RMD is the minimum amount you must withdraw from your retirement account each year once you reach a certain age or, in the case of an inherited IRA, after the original owner's death. These withdrawals are taxable as ordinary income.
Key Rules for Non-Spouse Inherited IRAs:
1. Deaths Before January 1, 2020 (Pre-SECURE Act)
If the original IRA owner died before 2020, non-spouse beneficiaries generally follow the "stretch" IRA rules. This allowed you to stretch RMDs over your own life expectancy, providing significant tax-deferred growth potential. Your annual RMD is calculated by dividing the IRA balance (as of December 31 of the prior year) by your life expectancy factor from the IRS Single Life Expectancy Table (Table I).
2. Deaths On or After January 1, 2020 (Post-SECURE Act)
The SECURE Act introduced the "10-Year Rule" for most non-spouse beneficiaries. However, there are important exceptions:
Eligible Designated Beneficiaries (EDBs)
Certain beneficiaries are exempt from the 10-Year Rule and can still "stretch" RMDs over their life expectancy, similar to the pre-SECURE Act rules. EDBs include:
The surviving spouse of the IRA owner (though spouses have other options like rolling over the IRA).
Minor children of the IRA owner (until they reach the age of majority, typically 21, after which the 10-year rule applies).
Disabled individuals.
Chronically ill individuals.
Individuals who are not more than 10 years younger than the deceased IRA owner.
If you are an EDB, your RMD is calculated by dividing the IRA balance (as of December 31 of the prior year) by your life expectancy factor.
Non-Eligible Designated Beneficiaries (Non-EDBs) – The 10-Year Rule
Most non-spouse beneficiaries who are not EDBs fall under this rule. The entire inherited IRA balance must be distributed by December 31 of the tenth calendar year following the year of the original owner's death.
However, there's a critical distinction based on whether the original owner had started taking RMDs:
If the deceased owner died BEFORE their Required Beginning Date (RBD) (i.e., they had not started taking RMDs): No annual RMDs are required for the first nine years. The entire account balance must simply be withdrawn by the end of the 10th year.
If the deceased owner died ON or AFTER their Required Beginning Date (RBD) (i.e., they had started taking RMDs): Annual RMDs ARE required for years 1 through 9, based on the deceased owner's remaining life expectancy. The entire remaining balance must then be withdrawn by the end of the 10th year. This was clarified by IRS Notice 2022-53.
How the Calculator Works:
This calculator helps you determine your RMD based on these complex rules:
Your Current Age: Used to determine your life expectancy factor if you are eligible to stretch RMDs.
IRA Account Balance: The value of the inherited IRA as of December 31 of the year prior to the year for which you are calculating the RMD.
Year of Deceased Owner's Death: Crucial for determining whether pre- or post-SECURE Act rules apply.
Eligible Designated Beneficiary (EDB) Status: Determines if you can stretch RMDs or are subject to the 10-Year Rule.
Deceased Owner Taking RMDs: For non-EDBs under the 10-Year Rule, this determines if annual RMDs are required during the 10-year period.
Deceased Owner's Age at Death: If annual RMDs are required for non-EDBs, this helps calculate the RMD based on the deceased's remaining life expectancy.
Important Considerations:
Penalties: Failing to take your RMD can result in a 25% penalty on the amount not withdrawn (reduced to 10% if corrected promptly).
Tax Implications: RMDs are generally taxed as ordinary income. Plan for these withdrawals in your tax strategy.
Professional Advice: Inherited IRA rules are highly complex and can vary based on specific circumstances (e.g., trust as beneficiary, multiple beneficiaries). This calculator provides an estimate; always consult with a qualified financial advisor or tax professional for personalized advice.
Use this calculator as a guide to understand your potential RMD obligations, but remember that professional guidance is invaluable for navigating these intricate regulations.