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Instructions to Use the RMD Inherited IRA Calculator

To calculate the Required Minimum Distribution (RMD) for an Inherited IRA, enter the current value of the IRA and your age. Click ‘Calculate’ to see the required distribution amount.

RMD Calculator for Inherited IRA

The RMD Calculator for Inherited IRAs helps you determine the minimum amount you must withdraw from your inherited retirement account each year. It is important to take the correct amount to avoid penalties.

Understanding the RMD Inherited IRA Calculator

When you inherit an IRA, you are required to start taking distributions. The calculator considers your age and the account balance to compute the RMD.

Importance of Calculating RMD for Inherited IRA

Calculating the RMD accurately ensures compliance with IRS rules and helps in financial planning. Failure to withdraw the RMD can result in significant tax penalties.

FAQ

What is an Inherited IRA?

An Inherited IRA is an account that is opened when you inherit an IRA or employer-sponsored retirement plan after the original owner dies.

How does the calculator work?

The calculator uses the current account balance and your age to determine the RMD based on IRS life expectancy tables.

Can I withdraw more than the RMD?

Yes, you can withdraw more than the RMD, but the additional amount will be included in your taxable income.