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There are three different sites that have good calculators for calculating minimum required distributions(MRD).
1. www.piperjaffray.com/si
2. http://72t.net/default.asp
3. www.i-orp.com
I have spent the last three months looking for good sites for determining MRDs and the various options that you have as an owner of a tax-deferred acount. This has been the question that we have been studying in my Retirement Planning Study Group. The third site does more than just calculating the MRD. You will find that the first two sites are excellent and they both give you the various options that you have available for determining life expectancies:
1. Single-term certain
2. Single-recalculate
3. Joint-term certain
4. Joint-recalculate
5. Joint-hybrid(recalculate owner, term certain beneficiary
You will see that most sites discuss the first four options, but not the fifth option. The hybrid method is the method of choice in most situations, but there is less information about this method. You need to realize that not all custodians of your tax-deferred accounts will not give all of these options. Each option has its advantages and disadvantages. Who you name as your desiganted benifiaciary and contingent benefiaciaries is extremely important. There are number of good articles in the retiree port and taxes archives at the fool.com site that you should read. David Braze and Roy Lewis have alot of good articles. In your planning you need to think not only about your taxes as you withdraw your money, but also, the taxes that your heirs will pay. Estate planning is an imortant part of your selection of which option you are going use. Once you have made your choice and you have passed your RBD you are frozen into which option you can use, so chose wisely. Read, study and then get help from a professional. The fees you will pay them will be small in comparison to the taxes you can save. This a big and important decision. You have until April 1st. of the year following the year you turn 70 1/2 (RBD), but you should make your first MRD the year you turn 70 1/2 for tax reasons. If you have more questions feel free to contact me at gstipps@iquest.net
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