Inherited IRA Distribution Calculator

Assumptions

Introduction

Based on the information provided, this report shows the required minimum distribution (RMD) amount, if any, for withdrawal this calendar year. This Inherited IRA Distribution Calculator is intended to serve as an informational tool only, and should not be construed as legal, investment, or tax advice. You should discuss your situation with your investment planner, tax advisor, or an estate planning professional to identify specific issues not addressed by the Calculator before acting on the information you receive from this tool.

Before deciding how to proceed with an inherited IRA, an investor should consider various factors including, but not limited to, age, account type, and relationship of the account holder to the beneficiary.

Note:

If the IRA owner died after his/her Required Beginning Date (RBD), any portion of the IRA owner’s RMD for the year of the death not withdrawn prior to the IRA owner’s death must be paid to the beneficiary. This Calculator should not be used to determine the amount due in the year of the death of the original account owner. It is only used to determine subsequent RMDs for the beneficiary.
Beneficiaries are responsible for withdrawing the correct amount of RMDs from the inherited IRA within the appropriate time period in order to avoid IRS penalties.
The time of the first required distribution will depend on the beneficiary type and in some instances, whether the original account owner died before, on, or after the required beginning date (RBD). Consult your investment planner, tax advisor, or an estate planning professional regarding the time of your first required distribution.
This calculator assumes the assets have been transferred from the original retirement account to an inherited IRA in the name of the beneficiary. If the account was inherited from someone who was already a beneficiary, different rules apply and this tool should not be utilized to calculate the RMD.
This calculator uses the latest IRS life expectancy tables to calculate any applicable annual RMDs.

Calculations

You are responsible for the calculation of your Inherited IRA RMD and the accuracy of your tax return. Withdrawals of taxable amounts may be subject to ordinary income tax. You should periodically review your overall tax plan with your tax advisor.
If the original account owner passed away before April 1 of the year after reaching RMD age, this tool will treat the original owner as not having reached his or her RBD.
RMD age is 73 for individuals born on or after January 1, 1951, age 72 for individuals born between July 1, 1949, and December 31, 1950, and 70½ for individuals born before July 1. 1949.
If the account owner passed away in 2020 or beyond and had reached RBD, this tool will calculate the RMD based on the life expectancy of the individual (account owner or Eligible Designated Beneficiary) with the longer life expectancy. Given recent changes included in the SECURE Act you should review these results with your Tax Advisor before taking any action on your accounts.
The Calculator does not consider the effect of taxes on the RMD withdrawn and the amount owed in taxes on the withdrawal is not calculated.
The Inherited IRA RMD Calculator’s results may vary with each use and may change over time due to updates to the Calculator or because of changes in personal circumstances or market conditions. Consider returning to the Calculator at least annually to calculate the RMD for the current year.

Inherited IRA Distribution Calculator

Determine the required distributions from an inherited IRA

How much may I need to withdraw?

Inherited account information

Beneficiary information


	Inherited IRA Distribution Calculator Determine the required distributions from an inherited IRA If you have inherited a retirement account, generally, you must withdraw money from the account in accordance with IRS rules. These amounts are called required minimum distributions (RMDs). RMD amounts depend on various factors, such as the account owner’s age at death, the year of death, the type of beneficiary, the account value, and more. If inherited assets have been transferred into an inherited IRA in your name, this calculator may help determine how much may be required to withdraw this year from the inherited account. Please note: The SECURE Act changes the distribution rules for beneficiaries of account owners who pass away in 2020 and beyond. Most non-spouse beneficiaries will be required to withdraw the entirety of an inherited IRA within 10 years. You are strongly advised to consult your legal and/or tax advisor regarding your personal situation. GET STARTED How much may I need to withdraw? Assumptions Inherited account information Enter account balance $0 and $100,000,000. CONTINUE Beneficiary information Beneficiary type: Spouse Non-spouse individual Non-spouse individual who is not more than 10 years younger than the account owner Non-spouse individual who is chronically ill or disabled (as defined by the IRS) Other non-spouse individual Minor child of account owner Estate or Non-qualified trust Charitable organization Qualified Trust Is this beneficiary the sole primary beneficiary of the IRA? Yes No Are the other beneficiaries individuals? Yes No Have separate accounts been established for each beneficiary by December 31st of the year after the IRA owner's death? Yes No BACK VIEW RESULTS What this calculator does: Helps IRA beneficiaries calculate the required minimum distribution (RMD) amount that must be withdrawn this calendar year from an inherited IRA, if applicable. In some situations, the RMD rules for beneficiaries of IRA owners who died before 2020 are different than the RMD rules for beneficiaries of IRA owners who died in 2020 and beyond. Assumes that beneficiary has transferred the inherited assets into an inherited IRA in their name. Prints a report showing potential results and the assumptions for easy reference. SS&C is not affiliated with Morgan Stanley Smith Barney LLC or its affiliates. Securities products and services are offered by Morgan Stanley Smith Barney LLC, Member SIPC. System response and account access times may vary due to a variety of factors, including trading volumes, market conditions, system performance, and other factors. This calculator is for hypothetical use only and is dependent on the information you provide. The calculations rely on a number of simplifying assumptions, and the results may vary from your actual situation. As tax and other laws change from time to time, there's no guarantee that the information used in this calculator is accurate or up to date. This calculator should not be used for or considered as investment or legal advice. © 2024 SS&C Technologies, Inc. All rights reserved. X Assumptions Introduction Based on the information provided, this report shows the required minimum distribution (RMD) amount, if any, for withdrawal this calendar year. This Inherited IRA Distribution Calculator is intended to serve as an informational tool only, and should not be construed as legal, investment, or tax advice. You should discuss your situation with your investment planner, tax advisor, or an estate planning professional to identify specific issues not addressed by the Calculator before acting on the information you receive from this tool. Before deciding how to proceed with an inherited IRA, an investor should consider various factors including, but not limited to, age, account type, and relationship of the account holder to the beneficiary. Note: If the IRA owner died after his/her Required Beginning Date (RBD), any portion of the IRA owner’s RMD for the year of the death not withdrawn prior to the IRA owner’s death must be paid to the beneficiary. This Calculator should not be used to determine the amount due in the year of the death of the original account owner. It is only used to determine subsequent RMDs for the beneficiary. Beneficiaries are responsible for withdrawing the correct amount of RMDs from the inherited IRA within the appropriate time period in order to avoid IRS penalties. The time of the first required distribution will depend on the beneficiary type and in some instances, whether the original account owner died before, on, or after the required beginning date (RBD). Consult your investment planner, tax advisor, or an estate planning professional regarding the time of your first required distribution. This calculator assumes the assets have been transferred from the original retirement account to an inherited IRA in the name of the beneficiary. If the account was inherited from someone who was already a beneficiary, different rules apply and this tool should not be utilized to calculate the RMD. This calculator uses the latest IRS life expectancy tables to calculate any applicable annual RMDs. Calculations You are responsible for the calculation of your Inherited IRA RMD and the accuracy of your tax return. Withdrawals of taxable amounts may be subject to ordinary income tax. You should periodically review your overall tax plan with your tax advisor. If the original account owner passed away before April 1 of the year after reaching RMD age, this tool will treat the original owner as not having reached his or her RBD. RMD age is 73 for individuals born on or after January 1, 1951, age 72 for individuals born between July 1, 1949, and December 31, 1950, and 70½ for individuals born before July 1. 1949. If the account owner passed away in 2020 or beyond and had reached RBD, this tool will calculate the RMD based on the life expectancy of the individual (account owner or Eligible Designated Beneficiary) with the longer life expectancy. Given recent changes included in the SECURE Act you should review these results with your Tax Advisor before taking any action on your accounts. The Calculator does not consider the effect of taxes on the RMD withdrawn and the amount owed in taxes on the withdrawal is not calculated. The Inherited IRA RMD Calculator’s results may vary with each use and may change over time due to updates to the Calculator or because of changes in personal circumstances or market conditions. Consider returning to the Calculator at least annually to calculate the RMD for the current year.