Required Minimum Distributions (RMDs)

Determining Prior Year-End Account Balance

To complete the RMD calculation you will need the market value of the account as of the last day prior to the year for which the distribution is being calculated. Generally this is the year-end account value as listed on the account statement ending December 31st. However, any outstanding rollovers, outstanding transfers, and certain recharacterizations must be added to the year-end account balance before calculating the RMD amount.

• Outstanding Rollovers

  An outstanding rollover occurs when an eligible rollover distribution is paid from one account but is not deposited to the second account before the end of the calendar year.

• Outstanding Transfers

  An outstanding transfer reflects a transfer which is initiated prior to the end of the calendar year but is not completed until after the end of the calendar year.

• Recharacterizations

  All or any portion of a Roth IRA conversion contribution (plus earnings attributable) can be recharacterized back to a traditional IRA in the year following the conversion. RMD regulations require this recharacterized conversion amount to be added to the year-end account balance of the traditional IRA before calculating a RMD for that IRA.

The information contained on these pages is for general educational purposes only, individuals should consult their financial advisor or legal counsel to determine how these regulations affect their unique situation.