Required Minimum Distribution

SEM has gathered the information below to assist you in calculating Required Minimum Distributions (RMDs).

Generally, a RMD is calculated for each account by dividing the prior December 31st balance of that IRA or retirement plan account by a life expectancy factor that IRS publishes in Tables in Publication 590, Individual Retirement Arrangements (IRAs). There are three separate tables:

You can also use an online calculator

It is usually best to calculate the RMD using the IRS's tables.  You can then double check the amount with an online calculator.  Note that these calculators do not always work with Beneficiary IRAs.

E*Trade Advisor Services provides an "on-demand" report with all of your RMD information. To generate it, go to Documents / Standard Reports / RMD Report for One Representative. From there you can find the report under Completed Reports. You can also view individual RMD data under the "Account Details" Tab & then clicking "Required Minimum Distribution".

TD Ameritrade RMD Calculations are available online.  You can view a list of your standard IRA clients anytime on VEO to see if an RMD should occur by year-end. Go to "Accounts", "Consolicated View", "RMD".  Remember, TDA provides this information as a courtesy.  Any RMD information should be verified with your client's tax advisor.  TDA does provide a RMD calculator on VEO.  The RMD information on VEO does not use the IRS Joint Life Table for spousal beneficiaries >10 years younger.  RMD calculator can be used for those special curcumstances.  Inherited IRA accounts are also a manual calculation for TDA.  Please contact our office if you would like TDA to calculate for an Inherited IRA account.

To set up your client's Traditional IRA, SEP IRA or SIMPLE IRA with automatic RMD withdrawal with E*Trade or TDA, use the IRA Distribution or Withdrawal Request form and mark the appropriate boxes for the custodian to calculate.  

For more information please contact us via email at support@stratequity.com or at 1-800-408-2423

IMPORTANT NOTE:  RMD rules are subject to legislative changes.  This is not intended to be legal or tax advice.  Consult a qualified tax advisor regarding specific circumstances.  SEM is not responsible for other websites or their content/advice.

used by a beneficiary of an account
used by an account owner whose sole beneficiary of the account is his or her spouse and is more than 10 years younger than the account owner
used by account owners whose spouse is not the sole beneficiary or whose spouse is not more than 10 years younger