*This calculator follows the latest IRS rules and tables which were finalized on April 16th, 2002. These new IRS regulations were optional in 2002 but became mandatory as of January 1st, 2003. If you have questions, please consult with your own tax advisor regarding your specific situation.

Account balance

This is the fair market value of your account as of the close of business on December 31st of the preceding year.

Beneficiary age as of 12/31 of distribution year

This is the beneficiary's age as of December 31st of the distribution year.

Beneficiary age as of 12/31 of the year following the owner's death

This is the age of the beneficiary as of December 31st of the year following the account owner's death. For example, if the account owner died in March of 1999 you would need to enter the beneficiary's age as of December 31, 2000.

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). The actual rate of return is largely dependant on the type of investments you select. For example, from January 1970 to February 2003 the average compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 11%. Savings accounts at a bank pay as little as 2% or less.  It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are subject to higher risk and volitility.  The actual rate of return on investments can vary widely over time, especially for long-term investments.  This includes the potential loss of principal on your investment.