At a glance
- The required beginning date (RBD) is April 1 of the year after the owner reaches 73.
- The year-of-death RMD cannot be skipped.
- Advisors sorting an inherited IRA start by comparing the death date with the RBD, which determines whether annual RMDs apply at all.
Beneficiary RMD calculations turn on three inputs, Ed Slott's IRAHelp reported: whether the owner died before or after the required beginning date, the beneficiary type and the beneficiary's age. The required beginning date (RBD) is April 1 of the year after the owner reaches 73.
The year-of-death RMD cannot be skipped. If any of it remains untaken at death, the beneficiary must withdraw the balance by Dec. 31 of the following year. An eligible designated beneficiary then takes stretch RMDs based on their age the year after death. A 50-year-old uses a factor of 32.5, dividing the prior Dec. 31 balance by it; later years subtract 1.0 from the prior factor.
Advisors sorting an inherited IRA start by comparing the death date with the RBD, which determines whether annual RMDs apply at all. A non-eligible designated beneficiary whose owner died on or after the RBD takes annual RMDs in years 1 through 9 of the 10-year window and must empty the account by year 10. An estate inheriting before the RBD falls under the 5-year rule with no annual RMDs.
Age-50 stretch divisor: 32.5 in year 1, then 1.0 lower each year
Divide the prior Dec. 31 balance by a shrinking factor and the required withdrawal grows
Show as table
| Label | Value (factor) |
|---|---|
| Year 1 | 32.5 factor |
| Year 2 | 31.5 factor |
| Year 3 | 30.5 factor |
| Year 4 | 29.5 factor |
| Year 5 | 28.5 factor |
An age-50 beneficiary's stretch factor: 32.5, then 1.0 less each year
Each year the prior Dec. 31 balance is divided by a smaller factor, so the required withdrawal grows
Show as table
| Label | Value (factor) |
|---|---|
| Year 1 | 32.5 factor |
| Year 2 | 31.5 factor |
| Year 3 | 30.5 factor |
| Year 4 | 29.5 factor |
| Year 5 | 28.5 factor |
Age-50 beneficiary's stretch divisor: 32.5, then 1.0 lower each year
Divide the prior Dec. 31 balance by a shrinking factor and the required withdrawal grows each year
Show as table
| Label | Value (factor) |
|---|---|
| Year 1 | 32.5 factor |
| Year 2 | 31.5 factor |
| Year 3 | 30.5 factor |
| Year 4 | 29.5 factor |
| Year 5 | 28.5 factor |
Age-50 beneficiary's stretch divisor: 32.5, then 1.0 less each year
Prior Dec. 31 balance divided by a smaller factor each year means a bigger required withdrawal
Show as table
| Label | Value (factor) |
|---|---|
| Year 1 | 32.5 factor |
| Year 2 | 31.5 factor |
| Year 3 | 30.5 factor |
| Year 4 | 29.5 factor |
| Year 5 | 28.5 factor |
An age-50 beneficiary's stretch divisor: 32.5, then 1.0 less each year
Dividing the prior Dec. 31 balance by a smaller factor each year means a larger required withdrawal
Show as table
| Label | Value (factor) |
|---|---|
| Year 1 | 32.5 factor |
| Year 2 | 31.5 factor |
| Year 3 | 30.5 factor |
| Year 4 | 29.5 factor |
| Year 5 | 28.5 factor |
An age-50 beneficiary's stretch RMD divisor drops 1.0 each year
Dividing the prior Dec. 31 balance by a shrinking factor means a larger required withdrawal each year
Show as table
| Label | Value (factor) |
|---|---|
| Year 1 | 32.5 factor |
| Year 2 | 31.5 factor |
| Year 3 | 30.5 factor |
| Year 4 | 29.5 factor |
| Year 5 | 28.5 factor |
An age-50 beneficiary's stretch RMD divisor: 32.5, then 1.0 less each year
Each year the prior Dec. 31 balance is divided by a smaller factor, so the required withdrawal grows
Show as table
| Label | Value (factor) |
|---|---|
| Year 1 | 32.5 factor |
| Year 2 | 31.5 factor |
| Year 3 | 30.5 factor |
| Year 4 | 29.5 factor |
| Year 5 | 28.5 factor |
An age-50 beneficiary's stretch RMD divisor: 32.5, then 1.0 less each year
Same Dec. 31 balance divided by a shrinking factor means a larger required withdrawal each year
Show as table
| Label | Value (factor) |
|---|---|
| Year 1 | 32.5 factor |
| Year 2 | 31.5 factor |
| Year 3 | 30.5 factor |
| Year 4 | 29.5 factor |
| Year 5 | 28.5 factor |
An age-50 beneficiary's RMD divisor: 32.5, then down 1.0 a year
Each year the prior Dec. 31 balance is divided by a smaller factor, so the required withdrawal grows
Show as table
| Label | Value (factor) |
|---|---|
| Year 1 | 32.5 factor |
| Year 2 | 31.5 factor |
| Year 3 | 30.5 factor |
| Year 4 | 29.5 factor |
| Year 5 | 28.5 factor |
Age-50 beneficiary's RMD divisor: 32.5, then down 1.0 a year
Same prior year-end balance divided by a smaller factor each year means a bigger required withdrawal
Show as table
| Label | Value (factor) |
|---|---|
| Year 1 | 32.5 factor |
| Year 2 | 31.5 factor |
| Year 3 | 30.5 factor |
| Year 4 | 29.5 factor |
| Year 5 | 28.5 factor |
An age-50 beneficiary's stretch divisor: 32.5, then down 1.0 a year
Same year-end balance divided by a smaller factor each year means a larger required withdrawal
Show as table
| Label | Value (factor) |
|---|---|
| Year 1 | 32.5 factor |
| Year 2 | 31.5 factor |
| Year 3 | 30.5 factor |
| Year 4 | 29.5 factor |
| Year 5 | 28.5 factor |
An age-50 beneficiary's RMD divisor falls 1.0 a year
First stretch RMD divides the prior Dec. 31 balance by 32.5; each later factor is the prior one minus 1.0
Show as table
| Label | Value (factor) |
|---|---|
| Year 1 | 32.5 factor |
| Year 2 | 31.5 factor |
| Year 3 | 30.5 factor |
| Year 4 | 29.5 factor |
| Year 5 | 28.5 factor |
An age-50 beneficiary's RMD divisor falls 1.0 a year
First stretch RMD divides the prior Dec. 31 balance by 32.5; each later factor is the prior one minus 1.0
Show as table
| Label | Value (factor) |
|---|---|
| Year 1 | 32.5 factor |
| Year 2 | 31.5 factor |
| Year 3 | 30.5 factor |
| Year 4 | 29.5 factor |
| Year 5 | 28.5 factor |
An age-50 beneficiary's RMD divisor drops 1.0 each year
First year divides the prior Dec. 31 balance by 32.5; each later factor is the prior one minus 1.0
Show as table
| Label | Value (factor) |
|---|---|
| Year 1 | 32.5 factor |
| Year 2 | 31.5 factor |
| Year 3 | 30.5 factor |
| Year 4 | 29.5 factor |
| Year 5 | 28.5 factor |
An age-50 beneficiary's stretch RMD divisor falls 1.0 each year
First annual RMD divides the prior year-end balance by 32.5; each later factor is the prior one minus 1.0
Show as table
| Label | Value (factor) |
|---|---|
| Year 1 | 32.5 factor |
| Year 2 | 31.5 factor |
| Year 3 | 30.5 factor |
| Year 4 | 29.5 factor |
| Year 5 | 28.5 factor |
An age-50 beneficiary's RMD divisor falls 1.0 each year
First stretch RMD divides the prior year-end balance by 32.5; each later factor is the prior one minus 1.0
Show as table
| Label | Value (factor) |
|---|---|
| Year 1 | 32.5 factor |
| Year 2 | 31.5 factor |
| Year 3 | 30.5 factor |
| Year 4 | 29.5 factor |
| Year 5 | 28.5 factor |
An age-50 beneficiary's RMD divisor falls 1.0 every year
First stretch RMD divides the prior year-end balance by 32.5; each later factor is the prior one minus 1.0
Show as table
| Label | Value (factor) |
|---|---|
| Year 1 | 32.5 factor |
| Year 2 | 31.5 factor |
| Year 3 | 30.5 factor |
| Year 4 | 29.5 factor |
| Year 5 | 28.5 factor |
An inherited IRA's life-expectancy divisor drops 1.0 a year
Age-50 beneficiary: first RMD divides by 32.5, then the factor falls by 1.0 annually
Show as table
| Label | Value (factor) |
|---|---|
| Year 1 | 32.5 factor |
| Year 2 | 31.5 factor |
| Year 3 | 30.5 factor |
| Year 4 | 29.5 factor |
| Year 5 | 28.5 factor |
An inherited IRA's life-expectancy divisor drops 1.0 a year
Age-50 beneficiary: first RMD divides by 32.5, then the factor falls by 1.0 annually
Show as table
| Label | Value (factor) |
|---|---|
| Year 1 | 32.5 factor |
| Year 2 | 31.5 factor |
| Year 3 | 30.5 factor |
| Year 4 | 29.5 factor |
| Year 5 | 28.5 factor |
Reported by the Tax & estate planning desk from Ed Slott — IRAHelp. Published . Corrections