Account balance as of 12/31 of year prior to distribution year

This is the fair market value of your account as of the close of business on December 31st of the preceding year. The IRS has decided that the balance on this date should be used, with two important distinctions: 1. This amount is increased by any contributions made for the preceding year after December 31st. 2. If this is your second year of distributions and your first year distribution took place between January 1st and April 1st of the current year, your balance is decreased by the amount of the distribution.

Your age as of 12/31 of distribution year

Use the age your age as of 12/31 for the year you are calculating the distribution.

Spouse beneficiary age

Use the age your spouse will turn on their birthday for the year you are receiving the distribution.

Rate of return

This is the expected rate of return on your account. This is only used to help project your future account balances (which of course will impact your required minimum distribution).

Is your birthday after June 30th?

Check this box if your birthday is after June 30th. This is a factor in determining whether the IRS requires you to begin distributions when you are age 70 or 71. For calculating your first year's distribution, the IRS specifically states to use your age on your birthday in the year you turn 70 1/2. For example, if your birthday is between January 1st and June 30th the first year of distribution would be at age 70. If your birthday is between July 1st and December 31st the first year of distribution would be at age 71.

Is your spouse your only beneficiary?

Check this box if your only beneficiary is your spouse. This can be a factor in determining whether the IRS uniform table must be used or if you are able to use the Joint Life Expectancy Table.

The new IRS rules use a uniform table to calculate all life expectancies for determining a minimum distribution. The only exception to this rule is if the only beneficiary is a spouse and he or she is more than 10 years younger than the the account owner. In this situation the joint life expectancy table is used. The Joint Life expectancy table normally produces lower required distributions.

Information and interactive calculators are made available to you as self-help tools for your independent use. We cannot and do not guarantee their accuracy or their applicability to your circumstances. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.