Firstrade IRA owners who must take a Required Minimum Distribution (RMD) this year can now view the RMD amount directly on the Firstrade website and mobile app.
Important Note: The website and app display an RMD only if the IRA requires a distribution for the current year. Account holders who expect an RMD but do not see one should contact Firstrade Customer Service.
How to view the RMD
Mobile App
Tap the Positions icon in the bottom left corner. For linked accounts, select the IRA account using the menu button on the top left of the screen.
Tap Buying Power or Balance details and allocation.
The RMD amount appears as Current Year RMD.
Web
Log in to the Firstrade account. For linked accounts, select the IRA account from the drop-down menu at the top of the page.
Go to Accounts → Balances.
The RMD amount appears as Current Year RMD.
How the RMD is calculated
The RMD calculation divides the IRA's value as of December 31 of the previous year by a life expectancy factor from the IRS Uniform Lifetime Table (Table III).
RMD = Prior year-end account value ÷ IRS life expectancy factor
Example: An IRA owner who is 79 years old had an IRA balance of $91,049.24 on December 31 of last year. The Uniform Lifetime Table factor for age 79 is 21.1.
$91,049.24 ÷ 21.1 = $4,315.13 RMD for the year
The Uniform Lifetime Table applies to most IRA owners. A different table may apply when:
The account holder's spouse is the sole beneficiary and is more than 10 years younger than the account holder (Joint Life and Last Survivor Table, Table II), or
The account holder inherited the IRA (Single Life Expectancy Table, Table I).
If either applies, the actual RMD may differ from the amount shown. Firstrade recommends reviewing IRS Publication 590-B or consulting a tax advisor.
Things to know
Deadlines: The first RMD is due by April 1 of the year after the account holder turns 73. Each subsequent RMD is due by December 31 of each year. Delaying the first RMD to April 1 requires taking two RMDs that year.
Penalty: The IRS may impose a penalty of up to 25% of any required amount not withdrawn.
Multiple IRAs: For account holders with IRAs at Firstrade and at other firms, the amount shown reflects only the Firstrade IRA. Each IRA requires a separate RMD calculation, but the IRS generally allows the account holder to withdraw the total from one IRA or a combination of IRAs.
Roth IRAs: Roth IRA owners are not required to take RMDs during their lifetime.
Balance changes after year-end: Firstrade updates the RMD at the beginning of each year. Asset transfers into or out of the IRA around year-end may require a recalculation. Account holders who believe the amount is incorrect should contact Firstrade.
Ready to withdraw? See How do I withdraw funds from my account? for step-by-step instructions.
Firstrade does not provide tax or legal advice. A qualified tax advisor can address specific tax situations.