Since IRA accounts are tax sheltered investments, the IRS requires minimum distributions under certain conditions. Given that the penalty is a tax of 50%, you will want to be sure you understand when you need to start receiving your distributions. Using a widget can help, but also check page 59 on the IRS Publication 590 for complete information.
Using the Calculator
This calculator is designed to walk you through all the steps to determine your minimum distribution. Please read each question carefully and review the attached notes for each step. If you make a mistake, you can always start over.
Once you get to the final result page, the widget will recap your responses to each question and provide you with the minimum distribution required. Ensure that each response is accurate as those results are used to determine the distribution amount.
The widget only calculates one IRA at a time. If you have more than one IRA, you will want to recalculate the results for each one and add the totals together manually.
Always Use a Tax Professional
This widget is for informational purposes only and does not replace the advice of a tax accountant. You will always want to review your IRA disbursements with your local tax professional. Given the financial implications and the uniqueness of each individual's situation, only a tax expert can give you accurate advice.