What Is My Current Year Required Minimum Distribution?
This calculator provides an illustrative projection of your current year required minimum distribution (RMD), if any. The IRS requires you to make an annual minimum withdrawal from certain qualified plans after reaching a specific age based on your date of birth. The RMD is calculated annually based on the balance of the account at the end of the previous year, your age, who is the designated beneficiary of the account, and your spouse's age if they are the designated beneficiary. If you do not complete the annual RMD, you may be subject to a 25% penalty on your underpayment, plus ordinary income tax as the funds are withdrawn. Timely filing of Form 5329 may reduce the penalty to 10%. Understanding your annual RMD is an important component of effective retirement planning.
This information may help you analyze your financial needs. It is based on information and assumptions provided by you regarding your goals, expectations and financial situation. Neither CalcXML, the plan sponsor, nor Alight Solutions, LLC or its subsidiaries and affiliates have any fiduciary duties, responsibilities or liabilities regarding your use of this tool. No tax, investment, financial or legal advice is offered or given by this tool. In addition, information provided by this tool is intended to be an aid in your financial planning and should not be relied upon as the only source of information for you to consider. The information and calculations are intended to be illustrative and are supplied from sources we believe to be reliable, but we cannot guarantee their accuracy. Because your circumstances are unique, you need to assess your own situation and you may want to consult your tax or financial advisor for guidance. Hypothetical illustrations may provide historical or current performance information. Past performance does not guarantee nor indicate future results.
