ÿþ<HTML> <HEAD> <TITLE>RMD & Stretch IRA Calculator</TITLE> <META HTTP-EQUIV="Content-Type" CONTENT="text/html; charset=iso8859-1"> <META NAME="description" CONTENT="Financial Calculators, ©1998-2010 KJE Computer Solutions, LLC. For more information please see http://www.dinkytown.net"> <STYLE> <!-- BODY, TABLE, TD, TH, UL, OL, DD, DL, P, BR { font-family: helvetica, arial, sans-serif; font-size: 10pt; } H1 { font-family: helvetica, arial, sans-serif; font-size: 13pt; font-weight: bold; } DT { font-family: helvetica, arial, sans-serif; font-size: 10pt; font-weight: bold; } P.footer { font-family: helvetica, arial, sans-serif; font-size: 9pt; } DIV.large { font-family: helvetica, arial, sans-serif; font-size: 13pt; font-weight: bold; } --> </STYLE> </HEAD> <!-- Financial Calculators, ©1998-2008 KJE Computer Solutions, LLC. 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For more information please see: <A HREF="http://www.dinkytown.net">http://www.dinkytown.net</A> --> <H1>RMD & Stretch IRA Calculator</H1><P>The IRS requires that you withdraw at least a minimum amount - known as a Required Minimum Distribution - from your retirement accounts annually; starting the year you turn age 70-1/2. Use this calculator to help determine how you can stretch out your payments for as long as possible.<P><CENTER> <!--[if IE]><object name="calculator" classid="clsid:8AD9C840-044E-11D1-B3E9-00805F499D93" codebase="http://java.sun.com/update/1.6.0/jinstall-6-windows-i586.cab#Version=1,4,0,0" height="400" width="565"><param name="code" value="StretchIRA" /><param name="archive" value="dinkytown.jar" /> <P style="font-size:1px; color: #ffffff" line-height: 1px><![endif]--><![if !IE]><P style="font-size:1px; color: #ffffff" line-height: 1px><![endif]></P><![if !IE]><APPLET name="calculator" code="StretchIRA.class" align="baseline" WIDTH="565" HEIGHT="400" archive="dinkytown.jar"><![endif]> <PARAM name="OWNER_BIRTHDATE" value=""> <PARAM name="OWNER_DIES_AGE" value="80"> <PARAM name="BENEFICIARY_BIRTHDATE" value=""> <PARAM name="BENEFICIARY_DIES_AGE" value="80"> <PARAM name="SPOUSE_BENEFICIARY_BIRTHDATE" value="01/01/2005"> <PARAM name="ACCOUNT_BALANCE" value=""> <PARAM name="IS_BENEFICIARY_YOUR_SPOUSE" value="FALSE"> <PARAM name="REASONABLE_INTEREST_RATE" value="6"> <!--CUSTOM PARAMETERS--> <PARAM name="TEXT_FOR_REPORT" value="<HTML> <HEAD> <TITLE>RMD & Stretch IRA Calculator</TITLE> <META HTTP-EQUIV='Content-Type' CONTENT='text/html; charset=iso8859-1'> <META NAME='description' CONTENT='Financial Calculators, &QCPQ;1998-2010 KJE Computer Solutions, LLC. For more information please see http://www.dinkytown.net'> <STYLE> <!-- BODY, TABLE, TD, TH, UL, OL, DD, DL, P, BR { font-family: helvetica, arial, sans-serif; font-size: 10pt; } H1 { font-family: helvetica, arial, sans-serif; font-size: 13pt; font-weight: bold; } DT { font-family: helvetica, arial, sans-serif; font-size: 10pt; font-weight: bold; } P.footer { font-family: helvetica, arial, sans-serif; font-size: 9pt; } DIV.large { font-family: helvetica, arial, sans-serif; font-size: 13pt; font-weight: bold; } --> </STYLE> </HEAD> <BODY bgcolor='#FFFFFF' LINK='#003399' VLINK='#666666' BGCOLOR='#FFFFFF'> <CENTER><table border=0 bgcolor='#000000' width=468 cellspacing=1 cellpadding=0><tr><td width='100%'><table bgcolor='#FFFFDD' border=0 width=468 cellspacing=1 cellpadding=5><tr><td width='100%' align=center valign=middle><DIV class=large>RMD & Stretch IRA Calculator</DIV></td></tr></table></TD></TR></TABLE></CENTER> <H1>Minimum Required Distribution for CURRENT_YEAR is MINIMUM_DISTRIBUTION RMD</H1>**GRAPH**<P>The account owner will NOT_70_5 be over 70 1/2 by the end of this year, resulting in a MINIMUM_DISTRIBUTION RMD for CURRENT_YEAR. MINIMUM_DISTRIBUTION_ALT</H1><P> <P><CENTER><table border=0 bgcolor='#000000' width=95% cellspacing=1 cellpadding=0><tr><td width='100%'><table bgColor='#FFFFFF' border=0 width=100% cellspacing=1 cellpadding=5> <TR BGCOLOR='#CCCCCC'><TD COLSPAN=2><CENTER><B>Results Summary</B></CENTER></TD></TR> <TR BGCOLOR='#CCCCCC'><TD colspan=2><BR><b>Owner and account information:</TD></TR> <TR><TD><b>Owner's birth date </b> </TD><TD> OWNER_BIRTHDATE YOUR_AGE</TD></TR> <TR><TD valign=top><b>Owner's life expectancy</b> </TD><TD> APPLICABLE_LIFE_EXPECTANCY years, calculated using the IRS USE_MDIB</TD></TR> <TR><TD><b>Owner's age at death</b> </TD><TD> OWNER_DIES_AGE</TD></TR> <TR><TD><b>Plan type </b> </TD><TD> PLAN_TYPE_SELECTED </TD></TR> <TR><TD><b>Previous year ending value </b> </TD><TD> ACCOUNT_BALANCE as of 12/31/PREVIOUS_YEAR</TD></TR> <TR><TD><b>Annual rate of return </b> </TD><TD> REASONABLE_INTEREST_RATE </TD></TR> <TR BGCOLOR='#CCCCCC'><TD colspan=2><b><BR>Beneficiary's Information:</TD></TR> <TR><TD><b>Beneficiary birth date</b></TD><TD>BENEFICIARY_BIRTHDATE BENEFICIARY_AGE</TD></TR> <TR><TD><b>Is beneficiary a spouse?</b></TD><TD>IS_BENEFICIARY_YOUR_SPOUSE</TD></TR> <TR><TD><b>Beneficiary's age at death</b></TD><TD>BENEFICIARY_DIES_AGE</TD></TR> <TR><TD><b>Spouse's beneficiary's birth date</b></TD><TD>SPOUSE_BENEFICIARY_BIRTHDATE SPOUSE_BENEFICIARY_AGE</TD></TR> </TABLE></TD></TR></TABLE></CENTER> <P><DIV class=large>Account Balances and Minimum Distributions*</DIV> <HR SIZE=1> **REPEATING GROUP** <P> <CENTER><TABLE WIDTH=95%> <TR><TD width=80%><b>Total projected distributions during owner's lifetime:</b></TD><TD width=20% align=right>TOTAL_DISTRIBUTIONS_OWNER</TD></TR> TOTAL_LINE2 TOTAL_LINE3 <TR><TD width=80%><B>Total projected distributions: </B></TD><TD width=20% align=right><b>TOTAL_DISTRIBUTIONS</b></TD></TR></TABLE></CENTER> <P class=footer>*All distributions are assumed to be taken at the end of the year. If you have questions, please consult with your own tax advisor regarding your specific situation.</P> <P>This calculator provides a hypothetical projection of the Required Minimum Distribution (RMD) options. The projected values should be reduced for any applicable federal and state income taxes that will be due. The frequency of distribution for RMD must occur at least annually. RMD is subject to the terms of your qualified retirement plan. Plan terms may vary. <P>Distributions are required for each year beginning with April 1st of the year following the year in which the taxpayer attains age 70 1/2. If the plan is a Qualified Plan and the taxpayer is still working and not an owner of the business, distributions can normally be delayed until the taxpayer retires. </CENTER> <BR> <HR SIZE=1> <CENTER><P class=footer> Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues. </P></CENTER><br><br> </BODY> </HTML> "> <H1><CENTER>This Financial Calculator requires SUN's Java"! Plug-in. If you see this message you will need to download SUN's Java"! Plug-in. This can be done automatically by clicking the yellow bar at the top of your browser and choosing  Install ActiveX Control . </CENTER></H1> <OL> You can also get SUN's Java"! Plug-in here: <A href="http://www.java.com/en/download/download_the_latest.jsp" target=_blank><b>Get the Java"! Plug-in!</b></A> <P>For more information about this Plug-in please visit: <A href="http://www.dinkytown.net/money/sunjvm.html" target=_blank><b>SUN's Java"! Plug-in</b></A> <BR>For more information these financial calculators please visit: <A href="http://www.dinkytown.net" target=_blank><b>Financial Calculators from KJE Computer Solutions, LLC</b></A> </OL><!--[if IE]></OBJECT><![endif]--><![if !IE]></APPLET><![endif]> </CENTER><CENTER><SCRIPT>document.write(showbuttons())</SCRIPT> </CENTER> <H1>Definitions</H1><P><TABLE align='center' WIDTH="95%"><TR><TD><DL><!--DEFN_START--> <DT><B>Stretch IRA Strategy</B><DD>The Stretch IRA Strategy is only for those who do not need their entire IRA to cover their living expenses. The strategy assumes that you will take the smallest amount of money from the IRA that the law allows, and at the latest time it allows, without penalty. You should consider the effect of inflation on the assets included inside of the IRA, as inflation will erode purchasing power over time. You should remember that assets included inside of the IRA are subject to market risk, including the possible loss of principal. You should consider the fact that tax laws and IRS rules may change over time, potentially limiting the effectiveness of the Stretch IRA strategy. <P>Keeping these factors in mind, this calculator is designed to show you how you can stretch out your IRA distributions for as long as possible, even into the next generation. To do this, we do the following: <P>If you have your spouse as the beneficiary of the account: <OL><LI>The IRA owner names his/her spouse as sole primary beneficiary of the IRA. While alive, the IRA owner begins taking RMD payments at age 70 ½, using a factor from the IRS Uniform Lifetime Table to calculate the distribution (unless the spouse is more than 10 years younger than the owner and is the owner's sole beneficiary). <P><LI>Upon the death of the IRA owner, the surviving spouse rolls over the funds to his/her own IRA. Any RMD amount that was not taken for the year of death from the decreased spouse's IRA cannot be rolled over. The surviving spouse names a new IRA beneficiary, such as a child, and begins taking RMD at age 70 1/2 based on the Uniform Lifetime Table. <P><LI>Upon the surviving spouse's death, beneficiaries are required to take distributions. The beneficiaries generally take distributions from the IRA based on the life expectancy of the oldest beneficiary. Unless the account is split into separate accounts for each beneficiary by December 31st of the year following the year of death. </OL> <P>If your beneficiary is not a spouse: <OL><LI>The IRA owner names a beneficiary or beneficiaries of the IRA. While alive, the IRA owner begins taking RMD payments at age 70 ½ using the Uniform Distribution Table to calculate the distribution. <P><LI>Upon the death of the IRA owner, the beneficiaries are required to take distributions. The beneficiaries generally take distributions from the IRA based on the life expectancy of the oldest beneficiary. Unless the account is split into separate accounts for each beneficiary by December 31st of the year following the year of death. </OL> <P>The figures created for with this calculator are hypothetical and based on current and variable assumptions you selected to help illustrate a concept. Many factors could impact this hypothetical concept, such as possible changes to tax laws in the future, the impact of inflation and other risks. <P> <DT><b><A NAME="1"></a>Owner's birth date</b><DD>The account owner's birth date. We use this to calculate the account owner's age as well as when minimum distributions are required to take place.<P> <DT><b><A NAME="2"></a>Owner's age at death</b><DD>This is the age at which you believe the owner of the account will die. Since the IRS uses the age of the account owner as of 12/31 of any give year, this is actually the age of the account owner as of 12/31 of the year they died.<P> <DT><b><A NAME="3"></a>Annual rate of return</b><DD>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 dependent on the type of investments you select. For example, from December 1999 to December 2009, the average annual compounded rate of return for the S&P 500 was -0.6%, including reinvestment of dividends. From January 1970 to December 2009, the average annual compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 10.1% (source: www.standardandpoors.com). Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009). Savings accounts at a bank may pay as little as 1% or less but carry significantly lower risk of loss of principal balances.<P>It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. 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. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that funds and/or investment companies may charge.<P> <DT><b><A NAME="4"></a>Previous year end value</b><DD>This is the fair market value of your account as of the close of business on December 31st of the preceding year. For IRAs, no adjustments are made for contributions or distributions after that date. If you made a transfer or rollover from one account on or before December 31st of the preceding year and the funds were received by a new account in the next year, you will need to increase your December 31st fair market value by the amount that was transferred or rolled over and not included in the December 31 value of either account. This amount may also include the actuarial present value of any additional benefits not reflected in your year-end balance.<P> <DT><b><A NAME="5"></a>Plan type</b><DD>Please enter the plan type. The plan type will not affect the calculations, it is used for descriptive purposes only.<P> <DT><b><A NAME="6"></a>Beneficiary birth date</b><DD>This is the birth date of the account owner's beneficiary.<P> <DT><b><A NAME="7"></a>Beneficiary's age at death</b><DD>This is the age at which you believe the original beneficiary of the account will die. Like the account owner's age at death, this is actually the age of the beneficiary as of 12/31 of the year they died.<P> <DT><B><A NAME="8"></a>Is beneficiary a spouse? Checkbox</B><DD>Check this box if your only beneficiary is your spouse. The new IRS rules use the Uniform Lifetime Table to calculate all life expectancies for determining a minimum distribution. The only exception to this rule is if the only beneficiary is a spouse and he or she is more than 10 years younger than the account owner. In this situation, the joint life expectancy table is used. The Joint Life expectancy table normally produces lower required distributions. <P>We also use this entry for to determine whether to calculate for a spouse's beneficiary's life expectancy.<P> <DT><b><A NAME="9"></a>Spouse's beneficiary's birth date</b><DD>If the first beneficiary is a spouse of the original account owner, we use this birth date to determine the life expectancy of the spouse's beneficiary. <!--DEFN_END--></DL></TD></TR></TABLE> <BR> <HR SIZE=1> <CENTER> <P class=footer> Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues. </P></CENTER> <BR> </BODY> </HTML>