How much am I required to withdraw for an RMD?

Each year, the amount you will be required to withdraw will change. It’s based on your age and the balance in your account on December 31st of the previous year.

At Betterment, we calculate the RMD for your Traditional IRA each year for you, but anyone can calculate their own using the IRS worksheet.

You can find your RMD amount on their Fair Market Value (FMV) Statement, which is available in your account in the Documents > Taxes section.

If you have a Betterment for Business 401(k), please contact your employer for instructions on how to take your RMD.

While we do not automatically calculate RMDs for inherited IRAs, customers in our Premium plan can request that our advisors calculate this for them manually.

For inherited IRAs, this calculation is based on other factors and it’s a bit more complicated. For inherited IRAs, both Roth and Traditional, your required distribution will depend on factors such as whether or not you were the spouse of the decedent, and the age and year in which the original owner died.

If your spouse is your sole beneficiary and is more than 10 years younger than you, you may be entitled to use a more favorable life expectancy table to withdraw a lower distribution.