Calculating your RMD

Required minimum distributions (RMDs) are calculated by dividing your account’s prior year-end balance by the applicable IRS life expectancy factor. If you have multiple IRAs, or other tax-deferred retirement accounts subject to an RMD, you must calculate the RMD amount for each account individually.

Note: RMDs are not required for Roth IRAs.

Information needed to calculate your RMD:

1. The prior year-end account balance, which you can find on your year-end statement or by logging in to your account
2. Your IRS life expectancy factor — The IRS provides tables to determine the factor to use each year, based on your age and the beneficiary on the account:
   1. Uniform Lifetime Table — Use this table to calculate lifetime RMDs from IRAs and retirement plan accounts for unmarried account owners, married owners whose spouses aren't more than 10 years younger and married owners whose spouses are not the sole beneficiary
   2. Joint Life and Last Survivor Expectancy Table — Use this table to calculate RMDs from IRAs and retirement plan accounts when the sole beneficiary is the account owner’s spouse who is more than 10 years younger

Note:

• If you have a 403(b), you must calculate the RMD for each 403(b) account separately, but you can take the total amount from one or more of your 403(b)s
• RMDs from 401(k), 457, money purchase plan and profit-sharing plan accounts must be taken separately from each plan

How your RMD will appear on your tax forms

Distributions, including any federal and/or state tax withholding, taken during the calendar year are reported on Form 1099-R. If you are age 59½ or older, the amount is coded as a normal distribution.

RMDs are generally fully taxable. It is the IRA owner and their tax advisor’s responsibility to determine the tax liability.

View our tax form schedule to see when forms will be available.

Inherited IRAs

There are several factors that impact how to calculate the RMD amount for an inherited IRA, including:

1. The beneficiary’s relationship to the IRA owner
2. The beneficiary’s age
3. Whether the IRA owner had started taking RMDs

Contact a tax advisor or financial professional for assistance in completing the calculation and refer to IRS Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs).