Two figures in, a clear answer out. The rmd calculator uses your age, account balance as of dec 31, life expectancy factor, spouseage and one way to produce required minimum distribution (rmd) and life expectancy factor, applying the standard relationship for this problem in the order the calculation actually needs it.
What Is the RMD Calculator?
The rmd calculator takes your age, account balance as of dec 31, life expectancy factor, spouseage and one way and turns them into required minimum distribution (rmd) and life expectancy factor.
It is the kind of calculation you would otherwise do on the back of an envelope: mechanical, repeatable and easy to get subtly wrong without noticing.
How the RMD Figure Is Built
Each result is calculated from the ones before it, so the working is fully visible. That matters when the answer is going to be quoted to somebody else and you need to be able to explain where it came from.
The figures are exactly as good as the assumptions underneath them. Check the rates, the periods and the tax treatment before you rely on the result.
Reading the Result Sensibly
A small change in an input can move the result by much more than you would expect, particularly where the calculation divides by one of the figures you supplied. That is worth understanding before you rely on a figure.
For anything that will be committed to, write the inputs down beside the result. A number you can reproduce is worth far more than one you cannot explain.
A Worked Example
Working through an example, with your age set to 70, account balance as of dec 31 set to 10, life expectancy factor set to 5, the calculator returns required minimum distribution (rmd) of 2, and life expectancy factor of 44, and required minimum distribution (rmd) (rmd joint) of 0.23. Substitute your own figures and the same steps produce the same kind of answer.
Frequently Asked Questions
What do I need to work out required minimum distribution (rmd)?
Enter your age, account balance as of dec 31, life expectancy factor, spouseage and one way. The calculator then works through the relationship and reports required minimum distribution (rmd) and life expectancy factor.
What does the rmd actually calculate?
It takes your age, account balance as of dec 31, life expectancy factor, spouseage and one way and converts them into required minimum distribution (rmd) and life expectancy factor using the standard relationship for this problem. Each step is applied in turn, so every output is traceable back to the numbers you typed in.
How should I enter your age?
Use the value you actually have, in the unit shown next to the field. Enter every value in the same unit system. The calculator assumes the figures you supply are consistent, so it cannot correct a mistake that happens before the calculation starts.
Why does a small change in one value move the answer so much?
That happens when an output depends on a ratio, because dividing by a small number magnifies any change in it. Check the units first, then check whether the value you entered is in the range the relationship was designed for.
Is the answer exact?
It is as exact as the formula and the inputs allow. The method itself is the standard one for this problem, so the only sources of error are the figures you enter and the precision you ask for.