Calculator Assumptions

This RMD calculator is intended to serve as an informational tool only, and should not be construed as legal, investment, or tax advice. Please consult with a tax advisor or an investment professional about your unique circumstances.

The results from the RMD Calculator are based on the information that you provide throughout the tool, and are only as valid as the information provided by you. Therefore, Putnam Investments cannot guarantee the accuracy of the results.

You are responsible for your required minimum distribution and the accuracy of your tax return. Withdrawals of taxable amounts may be subject to ordinary income tax. You should periodically review your overall tax plan with a tax professional that knows your particular situation best.

The estimated value of your account is not intended to be indicative of future performance in any tax-advantaged retirement accounts. The actual future value of your retirement accounts and the annual RMD amounts you may be required to take may be higher or lower based on the following:

• The default annual rate of return on investments during the distribution period is 6%. You may change the percentage in the fields provided as part of the RMD Calculator. Your actual investment performance may produce higher or lower earnings. Securities that have the potential to provide a higher rate of return are associated with a higher level of risk. Many people seek to invest in securities with a lower level of risk as they get closer to retirement. Actual investment returns will vary, particularly in the long term.
• You may begin taking distributions from your retirement accounts without incurring an early withdrawal penalty anytime after you turn age 59 ½. If you do, the actual account balances may be lower when you do reach age 73 than the estimates indicate. The RMD Calculator assumes that no withdrawals are made from retirement accounts until after age 73. The calculator also assumes that only the annual RMD amount is withdrawn each year for purposes of calculating estimated future values for your retirement accounts and future RMD amounts.
• The calculator assumes no additional contributions are made to the retirement balance you provided.
• The calculator assumes earnings on each account are reinvested on December 31 of each year.
• The calculator assumes the RMD for each year is withdrawn on December 31 of each year for which you would be required to take an RMD.
• The calculator does not consider the effect of taxes on the actual amount you will realize from each RMD and the amount you will owe in taxes on the withdrawal is not calculated.
• The RMD calculator will not correctly calculate RMD for inherited accounts, because different calculation rules apply.

For purposes of illustration, the calculations performed by the RMD calculator use the following assumptions:

• Only the RMD calculation methods as stated in the 2002 final regulations are used to calculate RMD amounts in this calculator. The RMD calculator uses the Uniform Lifetime Table to calculate RMD amounts unless you provide the month and year of birth of your sole spousal beneficiary who is more than ten years younger than you. In that case, the tool will use the IRS Lifetable to calculate your RMD for the current year, and for future year projections.
• The tool will only apply the Spousal Exception Joint Life Expectancy Table if the attained age of your spouse is greater than 10 years younger than your attained age in the same calendar year. Your "attained age" is your age upon your birthday in that calendar year.