Inherited Rmd Calculator

Inherited IRAs come with unique rules, timelines, and tax implications. Understanding how much you’re required to withdraw—and when—can be confusing, especially with laws varying based on your relationship to the deceased and the year they passed away. Fortunately, our Inherited RMD Calculator simplifies the process by helping you estimate your required minimum distribution (RMD) in just a few clicks.

This tool is especially valuable for non-spouse beneficiaries navigating the 10-year rule or spouses deciding between rolling over an IRA or treating it as inherited. Let’s walk through how to use the calculator, explore a few real-world examples, and break down everything you need to know about inherited IRA RMDs.

What Is an Inherited RMD Calculator?

The Inherited RMD Calculator is a user-friendly tool designed to estimate the amount you must withdraw each year—or over a defined period—from an inherited IRA. It factors in essential details such as:

  • Your relationship to the deceased account holder
  • The year the account holder passed away
  • Your birth year
  • The current account value

This information determines which IRS rules apply (such as the 10-year rule or life expectancy method) and calculates your expected annual distribution based on simplified assumptions.

How to Use the Inherited RMD Calculator: Step-by-Step

1. Enter the Account Value

Input the current balance of the inherited IRA. This should reflect the fair market value of the account, usually as of the end of the previous year.

2. Enter Your Birth Year

Provide the year you were born. This helps the tool estimate your current age and determine your life expectancy, which affects the RMD calculation for certain beneficiaries.

3. Enter the Year the Original Owner Passed Away

This is critical. The IRS rules changed significantly in 2020 with the SECURE Act. Whether the owner passed before or after 2020 determines whether the life expectancy or 10-year rule applies.

4. Select Your Relationship to the Deceased

Choose from:

  • Spouse
  • Child
  • Grandchild
  • Other Non-Spouse

Each has different withdrawal rules.

5. Click “Calculate”

Hit the Calculate button. Your results will appear immediately below, including:

  • Estimated annual RMD
  • The applicable distribution period
  • Deadline information
  • Next recommended steps

You can reset the calculator at any time with the Reset button.

Practical Examples

Example 1: Spouse Under Age 72

  • Account Value: $300,000
  • Birth Year: 1960 (Age 65)
  • Deceased Year: 2024
  • Relationship: Spouse

Result:
Since the spouse is under 72, no RMD is currently required. The user can roll the IRA into their own and wait until age 72 to start RMDs.

Example 2: Adult Child Beneficiary (Post-2020 Death)

  • Account Value: $200,000
  • Birth Year: 1985
  • Deceased Year: 2022
  • Relationship: Child

Result:
The 10-year rule applies. No annual RMD is mandated, but the full account must be distributed by December 31, 2032. The tool estimates an even annual withdrawal of $20,000 if distributions are spread out.

Why Use This Calculator?

  • ✅ Saves Time: Avoid digging through IRS tables and tax codes
  • ✅ Reduces Errors: Get an instant estimate based on your unique situation
  • ✅ Helps with Planning: Understand future tax liabilities
  • ✅ Guides Next Steps: Know whether to roll over, distribute, or consult a professional

When Are RMDs Required for Inherited IRAs?

Here’s a brief summary depending on your status:

  • Spouses: May roll the IRA into their own or treat it as inherited
  • Non-Spouse Beneficiaries: Usually must follow the 10-year rule for deaths after 2019
  • Minor Children of the Deceased: Can delay 10-year countdown until age of majority
  • Disabled or Chronically Ill Beneficiaries: May use the life expectancy method

Additional Considerations

  • Taxation: All RMDs from traditional IRAs are taxable income.
  • Roth IRAs: Still subject to RMDs if inherited, though distributions are usually tax-free.
  • Penalties: Failing to take RMDs can result in a 25% excise tax on the amount not withdrawn.

15+ Frequently Asked Questions (FAQs)

1. What is an RMD?

A Required Minimum Distribution (RMD) is the minimum amount you must withdraw from an IRA after inheriting it.

2. Who must take RMDs from inherited IRAs?

Most non-spouse beneficiaries must begin RMDs either annually or deplete the account within 10 years.

3. Do spouses have to take RMDs?

Not necessarily. Spouses can delay or roll over the IRA and start RMDs at age 72.

4. What is the 10-year rule?

It requires non-spouse beneficiaries to empty the inherited IRA within 10 years after the original owner’s death.

5. When does the 10-year rule apply?

For most deaths occurring on or after January 1, 2020, due to the SECURE Act.

6. How is the RMD calculated under the 10-year rule?

There are no fixed annual amounts. You can take distributions at any pace, as long as the account is emptied by year 10.

7. Can I withdraw more than my RMD?

Yes, you can withdraw more—but not less—than your RMD.

8. Are RMDs from inherited IRAs taxable?

Yes, traditional IRA distributions are taxed as ordinary income.

9. Is there an RMD for inherited Roth IRAs?

Yes, but distributions are generally tax-free if the account has been open at least five years.

10. What if the original IRA owner died before 2020?

You may be allowed to use the life expectancy method, depending on your relationship.

11. What happens if I miss an RMD?

A 25% penalty applies to the amount not withdrawn (reduced to 10% if corrected promptly).

12. Do minor children have different rules?

Yes. The 10-year rule starts once the child reaches the age of majority.

13. What if I’m disabled or chronically ill?

You may qualify for life expectancy-based distributions instead of the 10-year rule.

14. Can I name my own beneficiaries for an inherited IRA?

Yes, but new rules will apply to them when they inherit.

15. How often should I recalculate my RMD?

Annually, based on the account balance and applicable distribution rules.

16. Does my income affect my RMD?

No, RMDs are based on age, relationship, and account value—not income.

17. Can I reinvest my RMD?

Yes, but not back into an IRA. You can invest it in taxable accounts.

18. Are there tools for ongoing RMD tracking?

Yes, but this calculator helps you project your RMD based on today’s numbers.

Conclusion

Navigating inherited IRA distributions doesn’t have to be overwhelming. Our Inherited RMD Calculator takes the guesswork out of your financial planning, providing accurate, instant estimates based on your specific situation. Whether you’re a spouse planning for retirement or a non-spouse beneficiary looking to stay compliant with IRS rules, this tool is a must-have.

Use it today to gain clarity, avoid penalties, and plan your distributions with confidence. Always consider consulting a financial or tax advisor for personalized guidance.