What Is the IRS RMD Calculator?


Quick Answer

The Internal Revenue Service Required Minimum Distributions calculator is the established formula for determining the RMD for individual retirement accounts, according to the IRS. Retirement funds may not stay in IRAs indefinitely, and the RMD is the minimum amount an individual must withdraw from the account each year.

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Full Answer

With the exception of Roth IRAs, which do not require withdrawals until after the death of the owner, distributions from most accounts must begin when an individual reaches age 70 1/2, states the IRS. While retirees may withdraw more than the minimum required amount, the IRS assesses all withdrawals as taxable income except for previously taxed amounts or distributions designated as tax-free, such as those from Roth accounts.

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