Retirement may start a new phase of your life. This pre-retirement calculator is designed help you assess how well you have prepared and what you can do to potentially improve your retirement outlook. You also should consider re-evaluating your preparedness on an ongoing basis. Changes in economic climate, financial markets, and your personal situation may impact your strategy.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act suspends all RMD requirements for 2020. This means retirees do not have to take 2020 RMD's from retirement accounts subject to these distributions, such as IRA's, 401K's, and inherited accounts.
For years outside of 2020, tax law specifies that once you reach age 72 (70 1/2 if you turned 70 1/2 before January 1, 2020) you must begin making taxable withdrawals from traditional IRAs and many other retirement plans. These minimum distributions are calculated annually based on your age, the account balance at the end of the previous year, marital status, and spouse's age. If you do not take the annual minimum distribution, you may be subject to a 50% penalty on your underpayment, plus ordinary income tax as the funds are withdrawn. Persons age 72 (70 1/2 if you turned 70 1/2 before January 1, 2020) and older may find this calculator most useful.
Your IRA may play a key role in your retirement. And the amount of retirement income your IRA can generate may vary widely depending on what assumptions you make about return and tax rates during the accumulation and withdrawal periods. Use this calculator to help estimate your monthly and annual income from various IRA types.