The Required Minimum Distributions (RMDs) are once again required for 2021 . The CARES Act did NOT extend the RMD waiver for 2021.
Once you reach age 73 , the IRS requires that you withdraw a minimum amount each year from all your IRA and retirement plans (except Roth IRAs) and pay ordinary income on the taxable portion of the withdrawal. This amount is referred to as your Required Minimum Distribution (RMD).
Your RMD amount is determined by applying a Life Expectancy Factor set by the IRS to your account balance at the end of the previous year. To calculate your RMD:
- Log into Client Portal
- Click the User menu (head and shoulders icon in the top right corner) followed by Settings
- If you manage multiple accounts, select an account by clicking on the account number to popup the Account Selector
- Under Account Settings find the Account Configuration section
- Click Required Minimum Distribution Calculator
- Enter the required information and hit Calculate.
If you have more than one retirement plan, you will need to calculate the RMD for each separately, although the total may be withdrawn from any one or more of the accounts. Please refer to IRS Publication 590-B for additional spousal and beneficiary considerations.
Disclaimer: IBKR does not provide tax guidance or advice and the above is provided for informational purposes only. We recommend that clients consult with a qualified tax advisor or refer to the IRS for any tax-related questions.
Please Note
- Advisor and Introducing Broker master accounts can locate the RMD Calculator from the Home page of the Advisor Portal or Broker Portal under the Contacts tab by selecting a client account under the Tools page. The RMD Calculator will only be displayed if the selected account is a Traditional IRA, Rollover IRA or SEP IRA account.
- Due to COVID-19 the CARES Act is NOT requiring Traditional IRA 2020 Required Minimum Distributions (RMDs) for any IRA owner who is age 70½ before 1/1/2020.
Additional Information
- IRA Required Minimum Distribution Worksheet on the IRS website