Inherited Rmd Calculator

How to Use the Inherited RMD Calculator

Step 1: Enter the Inherited IRA Account Value

Begin the process by entering the total value of the Inherited IRA account. This field is labeled as Inherited IRA Account Value ($). Ensure that the account value entered is a non-negative number, adhering to the required validation conditions.

Step 2: Provide the Beneficiary’s Birth Date

Enter the birth date of the beneficiary using the provided date field. This is labeled as Beneficiary Birth Date. Make sure that the date entered does not exceed the maximum allowed date of December 31, 2024.

Step 3: Input the Original Account Owner’s Death Date

Next, provide the date of death of the original account owner in the field labeled Original Account Owner’s Death Date. Similar to the beneficiary’s birth date, ensure that this date is also not beyond December 31, 2024.

Step 4: Select the Beneficiary Type

Choose the appropriate beneficiary type from the selection options given. This field is labeled as Beneficiary Type. The available options include Spouse, Non-Spouse, Minor Child, and Disabled/Chronically Ill Person. This selection is crucial as it influences the distribution period used in subsequent calculations.

Review Your Input

Before proceeding to view your results, double-check that all the required information is filled out correctly and that you meet the input conditions stipulated by the validation criteria.

Understanding the Output

• Beneficiary Age: This field calculates and displays the age of the beneficiary, derived from the difference between today’s date and the beneficiary’s birth date. The result is displayed in whole years.
• Distribution Period: Based on the beneficiary type selected, this field calculates the time frame over which distributions are made. For spouses, the calculation is 120 minus the beneficiary’s age. For minor children, it is calculated based on the age when the child becomes 21. Non-spouses and other beneficiaries have a set distribution period of 10 years.
• Required Minimum Distribution: This field displays the required minimum distribution by dividing the account value by the distribution period. The result is formatted as a currency in USD.
• Distribution Rate: This output shows the distribution rate as a percentage, calculated by dividing the required distribution by the account value, then multiplied by 100. It is formatted to include two decimal places for precision.

Complete Your Entry

Upon confirming all entries are correctly filled, proceed to calculate the results. The calculator will provide the necessary financial insights based on the inputs given. This process helps beneficiaries and advisors plan the distribution of inherited IRAs efficiently.