Understanding Your Required Minimum Distribution (RMD)
A Required Minimum Distribution (RMD) is the minimum amount you must withdraw from your retirement accounts each year once you reach a certain age. These rules are set by the IRS, not by Fidelity directly, but Fidelity (and other custodians) facilitate these distributions for their account holders.
Who Must Take RMDs?
Generally, RMDs apply to traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k)s, 403(b)s, and 457(b)s. Roth IRAs do not have RMDs for the original owner. The age at which RMDs must begin has changed over time:
If you were born in 1950 or earlier, RMDs generally started at age 70½.
If you were born between 1951 and 1959, RMDs generally start at age 73.
If you were born in 1960 or later, RMDs generally start at age 75.
This calculator uses the current age 73 threshold for simplicity, but always verify your specific RMD start age based on your birth year and current IRS regulations.
How is Your RMD Calculated?
The RMD for a given year is calculated by dividing your IRA account balance as of December 31st of the previous year by a "distribution period" factor. This factor is determined by your age and is found in tables published by the IRS. The most commonly used table is the Uniform Lifetime Table.
Formula: RMD = (IRA Account Balance on Dec 31st of Previous Year) / (Distribution Period from IRS Table)
Key Factors:
Previous Year-End Balance: This is the value of your IRA on December 31st of the year prior to the year for which you are calculating the RMD. For example, to calculate your 2024 RMD, you would use your IRA balance as of December 31, 2023.
Your Age: Your age for RMD purposes is your age on December 31st of the year for which the RMD is being calculated.
Distribution Period: This factor comes from the IRS Uniform Lifetime Table. The table provides a specific number for each age, representing your life expectancy for RMD purposes.
When Must You Take Your RMD?
You must take your RMD by December 31st of each year. For your very first RMD, you have an extended deadline: you can delay it until April 1st of the year following the year you turn the RMD-triggering age. However, if you delay your first RMD, you'll have to take two RMDs in that subsequent year (your first RMD by April 1st, and your second RMD by December 31st), which could have tax implications.
Consequences of Not Taking Your RMD
Failing to take your full RMD by the deadline can result in a significant penalty. The penalty is generally 25% of the amount not distributed. This penalty can be reduced to 10% if you correct the shortfall promptly and notify the IRS.
Example Calculation:
Let's say you are 75 years old in the year 2024, and your IRA balance on December 31, 2023, was $150,000.
From the IRS Uniform Lifetime Table, the distribution period for age 75 is 24.5.
Your RMD for 2024 would be: $150,000 / 24.5 = $6,122.45
Disclaimer: This calculator provides an estimate based on the IRS Uniform Lifetime Table and common RMD rules. It does not account for specific situations like spousal beneficiaries more than 10 years younger, inherited IRAs, or other complex scenarios. Always consult with a qualified financial advisor or tax professional for personalized advice regarding your specific RMD obligations and financial planning.
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function calculateRMD() {
var iraOwnerAge = parseFloat(document.getElementById("iraOwnerAge").value);
var iraBalancePrevYearEnd = parseFloat(document.getElementById("iraBalancePrevYearEnd").value);
var rmdYear = parseFloat(document.getElementById("rmdYear").value);
var resultDiv = document.getElementById("result");
// Uniform Lifetime Table (as of 2022, for ages 73-120+)
var rmdTable = {
73: 26.5, 74: 25.5, 75: 24.5, 76: 23.5, 77: 22.5, 78: 21.6, 79: 20.7,
80: 19.8, 81: 18.9, 82: 18.1, 83: 17.3, 84: 16.5, 85: 15.7, 86: 14.9,
87: 14.1, 88: 13.4, 89: 12.7, 90: 12.0, 91: 11.4, 92: 10.8, 93: 10.1,
94: 9.5, 95: 8.9, 96: 8.4, 97: 7.9, 98: 7.4, 99: 6.9, 100: 6.4,
101: 6.0, 102: 5.6, 103: 5.2, 104: 4.8, 105: 4.4, 106: 4.1, 107: 3.8,
108: 3.6, 109: 3.3, 110: 3.1, 111: 2.8, 112: 2.6, 113: 2.4, 114: 2.2,
115: 2.0, 116: 1.8, 117: 1.6, 118: 1.4, 119: 1.2, 120: 1.0
};
// Input validation
if (isNaN(iraOwnerAge) || iraOwnerAge 120) {
resultDiv.innerHTML = "Please enter a valid age for the IRA owner (1-120).";
return;
}
if (isNaN(iraBalancePrevYearEnd) || iraBalancePrevYearEnd < 0) {
resultDiv.innerHTML = "Please enter a valid IRA account balance (non-negative).";
return;
}
if (isNaN(rmdYear) || rmdYear 2100) { // Reasonable year range
resultDiv.innerHTML = "Please enter a valid year for the RMD calculation.";
return;
}
var distributionPeriod = rmdTable[iraOwnerAge];
if (iraOwnerAge < 73) {
resultDiv.innerHTML = "Based on current IRS rules, RMDs generally begin at age 73. You are not yet required to take an RMD for this year.";
return;
}
if (distributionPeriod === undefined) {
resultDiv.innerHTML = "Could not find a distribution period for age " + iraOwnerAge + ". Please consult the full IRS Uniform Lifetime Table or a financial advisor.";
return;
}
var calculatedRMD = iraBalancePrevYearEnd / distributionPeriod;
resultDiv.innerHTML = "For the year " + rmdYear + ", your Required Minimum Distribution (RMD) is: $" + calculatedRMD.toFixed(2).replace(/\B(?=(\d{3})+(?!\d))/g, ",") + "." +
"This was calculated using a distribution period of " + distributionPeriod + " for an IRA owner aged " + iraOwnerAge + ".";
}