The program calculates required minimum distributions for the following types of accounts:
Corporate and self-employed pension, profit sharing and stock bonus plans qualified under IRC Sec. 401(a) (includes Keogh or H.R. 10 plans, 401(k) plans, and employee stock ownership plans or ESOPs),
Individual Retirement Accounts (IRAs) under IRC Sec. 408(a),
Simplified Employee Plans (SEPs) under IRC Sec. 408(k), and
Tax-sheltered annuities (except for account balances existing on 12/31/86 if kept separate for accounting purposes) under IRC Sec. 403(b).
For everything except a Roth IRA, the minimum distribution requirements generally apply when the owner of the plan reaches a certain age. Under the SECURE Act of 2019, birthdates that fall on or before 6/30/1949, this will be the 70½ year. The 70½ year is the year in which the plan owner attains age 70½. If the owner was born before July, this will be the year the owner turns 70. If the owner turns 70 after July, the next year will be the 70½ year. For birthdates that fall on or after 7/1/1949, this will be the year that the owner turns 72.
Minimum distributions depend on the life expectancies of the plan owner and a designated beneficiary. The calculated minimum distribution is the result of a simple calculation formula: Plan Balance divided by Life Expectancy. The complexity of the calculation arrives in determining the life expectancy to use.