The Required Minimum Distribution (RMD) Estimate is intended to serve as an informational tool only, and should not be construed as legal, investment, or tax advice. Please consult with a tax advisor or an investment professional about your unique circumstances.
NOTE: Any additional deposits made to an existing account after December 31 of the prior year are not included in the RMD Estimate provided on Fidelity.com.
The RMD Estimate contains the following information specific to your account(s):
- The account number and type for the account for which the RMD Estimate is being presented
- The current year RMD Estimate for this account
- A footnote indicating which IRS Life Expectancy Table is being used for your RMD Estimate
- A link to "Enlarge/Print View Calculation," which will present a pop-up detailing the numbers used in the RMD calculation or within the Retirement Distribution Center. Clicking the account number will expand a drawer on which the RMD calculation details are provided.
- The year-to-date distributions for this account with an "as of date" indicating the end date of the year-to-date time period. Distributions included in the amount are any distribution taken after January 1 of the current year, up until midnight of the "as of date." Distribution amounts include single distributions and distributions taken through any automatic withdrawal plans for that account.
- If the account is enrolled in an automatic withdrawal plan, you will see a tagline reading "This account is enrolled in Automatic Withdrawals."
- If the account is not enrolled in a plan, you see a hyperlink that reads "Learn about Automatic Withdrawals." By clicking this, you will be directed to the Automatic Withdrawals section of Fidelity.com and will be able to download an application to enroll. Within the Retirement Distribution Center, enrolling in automatic withdrawals is available in the "Ways to get your money" section.
- A footnote indicates the particular IRS life expectancy table that was used to calculate your estimate (either "Calculated using Uniform Lifetime Table"; "Calculated using Spousal Exception Joint Life Expectancy Table"; or, for inherited retirement accounts, "Calculated using Single Life Expectancy Table"). The hyperlink will link to the individual IRS life expectancy tables.
If you have more than one IRA at Fidelity, you will also be presented with an RMD Estimate for all your Fidelity IRAs, the presentation of which depends on which page you are viewing:
- Subtotal: for all your Fidelity IRA accounts
- Total current year RMD Estimate: for all your Fidelity IRA accounts.
- Total year-to-date distributions: for all your Fidelity IRA accounts with an "as of" date indicating what day the year-to-date distributions include
The IRA accounts included in the Total of RMD Estimate for all your Fidelity IRAs
- Traditional IRA
- Rollover IRA
- Simple IRA
- SEP IRA
IRA account types not included in the Total of RMD Estimate for all your Fidelity IRAs
- Roth IRAs
- Inherited IRAs, including Roth accounts
RMD Estimates for other retirement plan accounts held at Fidelity (such as Fidelity Retirement Plan (Keogh) profit sharing or money purchase and Self-Employed 401(k) accounts) are presented separately and are not aggregated in "All Your Fidelity IRAs," as these plan accounts are not IRAs and you must separately satisfy the RMD requirements from each account individually and not in aggregation.
An RMD Estimate is not presented for Roth IRAs as you, the original owner, are not required by the IRS to take RMDs during your lifetime for that account.
An RMD estimate is not presented for non-person inheritors such as trusts, entities, or nonprofits that hold an inherited IRA.
An RMD Estimate is not presented for other workplace savings plan accounts such as 401(k), 403(b), or 457 plans record kept at Fidelity, and it is not presented for certain annuity contracts, even though RMDs might otherwise be applicable. You may own other deferred IRA or qualified annuities purchased through Fidelity that are required to take RMDs but are not shown on the Retirement Distribution Center. If you have questions about your RMD requirement, please call Fidelity or your tax advisor.
Current year RMD estimate
The current year RMD Estimate is based on your accounts' prior year year-end account balance and the information that you provided. As a result, Fidelity Investments cannot guarantee the accuracy of the results.
The year-end balance of your account(s) on which the RMD estimate is based includes only assets in your Fidelity account on the last business day of the prior year. It does not include any "in transit" transfers or rollovers that were deposited in your account during the current year that should be considered part of the prior year-end balance and included in the RMD calculation. It is your responsibility to include those balances in your RMD calculations in order to take the full amount of RMD as required by the IRS.
The current year RMD Estimate is determined using the following:
- Your "Life Expectancy Factor" is determined based on the date of birth that is recorded for your account. That date of birth is used to determine your age, which is then used to determine the "Life Expectancy Factor" from one of the IRS tables for RMDs: either the Uniform Lifetime Table, the Spousal Exception Joint Life Expectancy Table, or, for inherited retirement accounts, the Single Life Expectancy Table.
- For original owner accounts, the existing beneficiaries listed for the account are used to determine which of the 2 tables is used. If your sole beneficiary for the account is your spouse, and your spouse is more than 10 years younger than you, the Joint Life Expectancy Table is used for the calculation. Otherwise the Uniform Lifetime Table is used. Note: IRS rules generally require that your spouse be your sole beneficiary for the entire year in order to be eligible to use the Joint Life Expectancy Table.
- For inherited accounts: most accounts use the Calculation method of Standard, which is defined below in the "How RMD estimates are calculated for inherited retirement accounts" section. For some customers who are the surviving spouse and sole beneficiary of the original owner, and who are enrolled in automatic withdrawals, the calculation method is Recalculation and is defined below in the "How RMD estimates are calculated for inherited retirement accounts" section.
- The prior year year-end-balance is the market value of your account captured immediately after December 31 of the prior year. Fidelity stores this number for the current year.
- The RMD calculation assumes no additional contributions are made to the retirement balance since December 31 of the prior year.
- The Total current year RMD for all your Fidelity IRAs is calculated by adding up individually calculated RMDs for all your Fidelity IRAs.
- The Total year-to-date distributions for all your Fidelity IRAs is calculated by adding up the individual distributions for all your Fidelity IRAs as of the date noted.
Important note for surviving spouse beneficiaries with inherited retirement accounts not enrolled in automatic withdrawals: the RMD Estimate provided will be inaccurate if you are eligible to use either the "recalculation method" for calculating RMDs or your deceased spouse's date of birth for the RMD calculation. Please contact Fidelity or your tax advisor to discuss your RMD for the inherited account.
On both the Retirement Distribution Center and on Portfolio Summary page content for the Retirement Distribution Center, a cumulative RMD estimate is presented for all your RMD amounts displayed on the Retirement Distribution Center. This total represents all the accounts presented on the Retirement Distribution Center for which an RMD is estimated. It is important to note that this total does not imply that aggregation is possible for all accounts included in the total. Please see the account details section for each accounts individual RMD and remember only your own IRA RMDs may be aggregated. Some accounts may not have an individual RMD estimated for them if Fidelity does not have data needed in order to estimate that RMD, including a prior-year year-end balance, date of birth of original owner, and other details.
How RMDs are calculated for your own retirement accounts
The RMD amount is calculated using your prior year year-end-balance divided by your current year life expectancy factor using your date of birth and the beneficiary information on file as of December 31 of the prior year. Beneficiary changes made in the current year are not factored into the calculation.
How RMDs are calculated for inherited retirement accounts
The RMD Estimate is available only for inherited accounts owned by individuals. Inherited account RMDs are calculated separately from your own IRAs. The RMD Estimate for inherited accounts assumes that you are eligible to take RMDs for the inherited account over your own life expectancy under IRS rules. For the first year after the original owner's death, the life expectancy factor is determined using your date of birth on file as of December 31 of the prior year and finding the corresponding life expectancy factor on the IRS Single Life Expectancy table. After the first distribution year, your life expectancy factor is reduced by one for each subsequent year. This is known as the Standard Method.
Alternately, if you have an automatic withdrawal plan for your RMD and you indicated that another beneficiary's life expectancy should be used for the calculation if you are a successor beneficiary or if there were multiple beneficiaries and the accounts were not separated by December 31 of the year following the original owner's death and if you have provided this alternate date of birth information to Fidelity before December 31 of the prior year, then that information will be presented.
Also, if you are enrolled in RMD automatic withdrawals and you are the surviving spouse and sole beneficiary of the original owner, then your method is the Recalculation Method. Per IRS Rules, this method then uses your age in that year to arrive at the life expectancy factor from the Single Life Expectancy table to calculate the RMD. Your age in each subsequent year is used to determine each subsequent year's life expectancy factor from the Single Life Expectancy table. If you have delayed RMDs until the original owner would have reached age 70½ and be required to take RMDs, this method calculates the beginning date for the RMDs as the year the original owner would have turned 70½.
When RMDs are calculated
Our system, RMD Tracker, calculates the RMD once per year. The RMD calculation is performed on or soon thereafter January 1 of the current year. The system will not recalculate your RMD during the year.
If you need to update your beneficiaries for your accounts, please visit Fidelity.com under the "Your Profile" tab and choose option "Beneficiaries." Some restrictions may apply. The RMD calculation will not recalculate for the current year based on changes made to beneficiaries. Those changes will be taken into consideration for the RMD calculation for the next year. If you have questions about the impact of beneficiary changes on your current year RMD, please contact Fidelity or your tax advisor.
Your current year RMD calculation will only be recalculated if you enroll in PWS for a plan to begin in the current year.
The RMD calculation will only appear on the webpages for an account owned by a customer who is age 70½ or older or for inherited account owners who are individuals of any age. Please see the webpages on Fidelity.com entitled "Retirement Distribution Center."
The RMD Estimate does not consider the effect of taxes on each RMD and the amount you will owe in taxes on the withdrawal is not calculated. The RMD calculation uses RMD calculation methods as stated in the IRS' 2002 final RMD regulations. The RMD Estimate produced by the RMD Tracker uses the IRS Uniform Lifetime Table to calculate RMD amounts for your own accounts unless you have provided the date of birth of your sole spousal beneficiary who is more than 10 years younger than you. In that case, the tool will use the Spousal Exception Joint Life Expectancy Table to calculate your RMD for the current year, and for future year projections or until you change the beneficiary information. For inherited retirement accounts, the RMD Estimate uses the Single Life Expectancy table.
The RMD Estimate produced by the RMD Tracker will only apply the Spousal Exception Joint Life Expectancy Table for original owner retirement accounts if the attained age of your spouse is greater than 10 years younger than your attained age in the same calendar year. Your "attained age" is your age upon your birthday in that calendar year.
Note for Fidelity Retirement Plan (Keogh) participants who are still working
Unless you are more than a 5% owner of the business sponsoring the plan and you continue to work for that business beyond age 70½, the IRS rules generally allow you to defer taking RMDs from your employer's plan until April 1 of the calendar after the year in which you retire. If this applies to you, the results from the RMD calculation may be inaccurate. Please consult with your Plan Administrator or tax advisor to determine your required beginning date.
Exceptions or notes
If you are a surviving spouse who is the sole beneficiary of your deceased spouse's IRA, you may elect to treat the IRA as your own. If you elect to treat the IRA as your own, going forward you determine and calculate RMDs (if any) as if you were the IRA owner. However, if you become the IRA owner in the year your spouse died, you may have an obligation to satisfy the deceased owner's RMD for the year of death (to the extent applicable and if not already satisfied before death).
In certain cases, a beneficiary may be required to take the distribution of the entire account by the end of the fifth year following the year of the owner's death. If this rule applies, no distribution is required for any year before the end of the fifth calendar year following the calendar year of the original owner's death. This may apply if you failed to begin your RMD distributions beginning in the year following the year the original account owner died. The 5-year rule applies only if the original owner was not yet required to take RMDs. Please contact Fidelity or your tax advisor to discuss further.
If your inherited retirement account is enrolled in an automatic withdrawal plan to manage your RMDs and you have given us information during that enrollment process, then that information is the information used in the RMD Estimate for the account.
This RMD Estimate does not take into account any successor beneficiary information or relationship situations. If you own the account as the result of the death of the beneficiary of the original owner, you must qualify the correct date of birth of the original beneficiary and have that information on record with Fidelity in order for the RMD Estimate to be correct.
Beneficiary not an individual
If the beneficiary owning the inherited account is not an individual, the RMD Estimate is not valid or may not be able to be calculated. In certain cases, IRS rules require that the entire account balance must be distributed by the end of the fifth year following the year of the owner's death or deceased account owner's life expectancy, depending upon whether the original account owner dies before or after the dates RMDs were required to begin. Please contact Fidelity or your tax advisor to discuss further.
General Information on Inherited Retirement Accounts and RMDs
Please see RMD Rules for Inherited IRAs