How is an inherited IRA RMD calculated?

Divide the account balance as of December 31 of the previous year by a life expectancy factor. The factor comes from the IRS Single Life Expectancy Table, based on the beneficiary's age in the first distribution year, and is then reduced by one for each year that follows.

Which age is used for the inherited IRA life expectancy factor?

The beneficiary's age on their birthday in the year after the owner's death. That age sets the starting factor, which is then reduced by one each subsequent year rather than looked up again.

Is the required minimum distribution the amount I should withdraw?

It is a floor, not a plan. Withdrawing only the minimum for nine years often leaves a large balance that must come out in year ten, stacking it into a single tax year and pushing income into higher brackets.

What happens if I withdraw less than the required minimum?

The excise tax is 25 percent of the shortfall, reduced to 10 percent if corrected within a two-year correction window. It is reported on Form 5329, which can also be used to request a waiver for reasonable cause.

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Inherited IRA RMD calculator

Your required withdrawal for this year, the factor it came from, and what happens to your tax bill if you take only the minimum for nine years.

Not sure whether you owe an annual withdrawal at all? Run the five-question rules checker first.

Account balance Balance on December 31 of last year

Your birth year The beneficiary's, not the owner's

Year the owner died Withdrawals begin the following year

Distribution year The year you are calculating for

My custodian gave me a different factor

Use this factor instead Leave blank to use the table

Your custodian's figure is the one the IRS will see reported. If it differs from the number here, use theirs and ask them to confirm it in writing.

How the number is built

The calculation itself is one division: last December's balance divided by a life expectancy factor. Everything difficult about it is in the factor.

The factor is set once, in your first distribution year, using your age that year and the IRS Single Life Expectancy Table. After that it is not looked up again — it is simply reduced by one every year. A beneficiary who starts at 34.2 uses 33.2 the next year, then 32.2, and so on. This is why two people the same age can have different factors: what matters is how old you were when the clock started, not how old you are now.

One detail catches people out. The age that sets the factor is your age in the year after the death, not the year of the death itself. Distributions to a beneficiary begin the following year.

The minimum is a floor, not a plan

The table above shows both schedules side by side for a reason. Taking only the required minimum feels safe — it is the number the custodian sends you, and it keeps you out of penalty territory. It is also, for most people, the more expensive path.

A traditional inherited IRA is taxed as ordinary income on the way out. Nine years of small withdrawals leave a large balance that must come out in year ten, and it lands on top of whatever else you earned that year. That single distribution can push you through two or three brackets, and because it inflates your income for the year it can also raise Medicare premiums two years later and phase out deductions and credits.

Spreading the same balance evenly usually produces a lower total bill, and the gap widens as the account gets larger. The genuinely optimal split takes your own income in each year into account — a gap between jobs, a sabbatical, the first year of retirement before Social Security starts. Those are the years to take more.

Common questions

Which age do I use for the factor?

Your age on your birthday in the year after the owner died. That single age sets the starting factor. Every year after, subtract one from it rather than looking the table up again.

What balance do I use?

The fair market value on December 31 of the previous year, before any withdrawal you take this year. Your custodian reports this figure on Form 5498 and it will appear on your year-end statement.

Can I take more than the minimum?

Yes, and for most beneficiaries of a traditional IRA the question is not whether to take more but how much more. There is no penalty for exceeding the minimum, and no benefit to leaving a balance that has to clear the year-ten deadline in one distribution.

What if I inherited more than one account?

Each inherited account is calculated separately, and inherited IRA amounts cannot be aggregated with your own IRA distributions. If you inherited from two different people, those accounts cannot be combined with each other either.

What if I missed a year?

The excise tax is 25 percent of the shortfall, reduced to 10 percent if you correct it within a two-year window. It is reported on Form 5329, which is also where a waiver for reasonable cause is requested. Waivers are commonly granted when the shortfall is fixed promptly — but this is the point at which a CPA earns their fee.

This calculator is educational and does not constitute tax advice. It uses the IRS Single Life Expectancy Table and applies the subtract-one method for years after the first distribution year. It does not handle every situation — trusts as beneficiaries, successor beneficiaries, spousal elections, and accounts inherited before 2020 all follow different rules. Confirm your figure with your IRA custodian and a CPA before withdrawing. Source table: IRS Publication 590-B, Appendix B, Table I.