Required Minimum Distribution (RMD) Calculator

Calculate your Required Minimum Distribution from Traditional IRAs and 401(k) accounts using the IRS Uniform Lifetime Table. Plan for taxes and see multi-year projections.

RMD Details

$

As of Dec 31 of previous year

yrs

Must be 72 or older

%
%

For multi-year projection

Ready to Calculate

Enter your account balance and age to calculate your Required Minimum Distribution and see multi-year projections.

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Pro Tip

Consider Roth conversions before age 73 to reduce your Traditional IRA balance and future RMDs. This is especially beneficial in lower-income years between retirement and RMD age.

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Understanding Required Minimum Distributions

Required Minimum Distributions are mandatory annual withdrawals from tax-deferred retirement accounts. The IRS requires these distributions because the money in Traditional IRAs and 401(k) plans has never been taxed, and they want to ensure it is eventually subject to income tax during your lifetime.

The SECURE 2.0 Act raised the RMD starting age to 73 (effective 2023) and is scheduled to increase to 75 in 2033. This gives retirees more time for tax-deferred growth but also means potentially larger RMDs when they begin, as account balances have more time to grow.

RMD amounts increase over time for two reasons: the distribution period shrinks each year (meaning a larger percentage must be withdrawn), and if your investment returns exceed your withdrawals, the balance grows, increasing the dollar amount of future RMDs. This can create a "tax torpedo" effect.

Strategic planning can minimize the tax impact of RMDs. Options include Roth conversions before RMD age, Qualified Charitable Distributions (QCDs) directly from your IRA to charity, and coordinating RMDs with other income sources and Social Security timing.

RMD Calculation Formula

Required Minimum Distribution

RMD = Account Balance (Dec 31) / Distribution Period

Where:

Account Balance = Fair market value as of December 31 of the prior year

Distribution Period = Factor from IRS Uniform Lifetime Table based on age

Example

For a $500,000 balance at age 73:

  • • Distribution period (age 73): 26.5 years
  • • RMD: $500,000 / 26.5 = $18,868
  • • At 22% tax rate: $4,151 in federal tax
  • • After-tax: $14,717
  • • At age 80: period = 20.2, so RMD grows as % of balance

Frequently Asked Questions

What is a Required Minimum Distribution (RMD)?
An RMD is the minimum amount you must withdraw from your Traditional IRA, SEP IRA, SIMPLE IRA, or employer-sponsored retirement plan (401k, 403b) each year starting at age 73 (as of SECURE 2.0 Act). RMDs ensure that tax-deferred retirement savings are eventually taxed as income.
When must I take my first RMD?
Under the SECURE 2.0 Act, RMDs must begin by April 1 of the year following the year you turn 73. Subsequent RMDs must be taken by December 31 each year. If you delay your first RMD to the following April, you must take two RMDs that year, which could push you into a higher tax bracket.
How is the RMD amount calculated?
The RMD is calculated by dividing your account balance (as of December 31 of the previous year) by the distribution period from the IRS Uniform Lifetime Table corresponding to your age. The distribution period decreases as you age, meaning you must withdraw a larger percentage each year.
What happens if I do not take my RMD?
The penalty for missing an RMD was reduced from 50% to 25% under SECURE 2.0 (10% if corrected within 2 years). This applies to the amount that should have been distributed. For a $20,000 RMD, the penalty would be $5,000 (25%) - a costly mistake worth avoiding.
Do Roth IRAs have RMDs?
No, Roth IRAs do not have RMDs during the original owner's lifetime. This is a major advantage of Roth accounts and a key reason some retirees consider Roth conversions before reaching RMD age. However, inherited Roth IRAs do have distribution requirements.