1095 Rule Calculator

1095 Rule Calculator calculator can be used to determine if a retiree must take Required Minimum Distributions (RMDs) from their retirement accounts based on their age and the year.

Input Parameters

Calculation Results

Calculation Formula

RMD Required = Age >= 70.5 AND Year >= 2020

Where:
Age: The age of the retiree
Year: The year for which the calculation is being performed

Result

1095 Rule Calculator Calculator Usage Guide

Learn how to use the 1095 Rule Calculator calculator and its working principles

Overview

The 1095 Rule, also known as the Required Minimum Distribution (RMD) rule, is a regulation by the IRS that requires retirees aged 70.5 or older to start taking minimum distributions from their retirement accounts (like IRAs and 401(k)s) starting from the year 2020.

How to Use the Calculator

  1. Enter your age in the "Age" field.
  2. Enter the year for which you want to calculate the RMD requirement in the "Year" field.
  3. Click the "Calculate" button to see if you must take an RMD for the specified year.
  4. If the result is "Yes", it means you must take an RMD for that year. If the result is "No", you do not have to take an RMD for that year.

Working Principle

The calculator uses the following logic to determine if an RMD is required:

  • If the retiree's age is 70.5 or older AND the year is 2020 or later, then an RMD is required.
  • If either of these conditions is not met, then an RMD is not required.

Example

For example, if you are 72 years old and you want to know if you need to take an RMD in 2023, enter "72" in the age field and "2023" in the year field. The calculator will display "Yes" because both conditions are met.