RMD Calculator

Calculate your Required Minimum Distribution from retirement accounts using IRS life expectancy tables

Account Information

Your date of birth (used to calculate your age)
Balance as of December 31 of previous year
Type of retirement account
Year for which you're calculating RMD
Optional: For tax withholding estimate

Results

Required Minimum Distribution
$0.00
Amount you must withdraw this year
Your Age (End of Year)
0
Age on December 31 of distribution year
Life Expectancy Factor
0
From IRS Uniform Lifetime Table

Understanding Required Minimum Distributions (RMDs)

Required Minimum Distributions (RMDs) are mandatory withdrawals that must be taken from traditional retirement accounts, including Traditional IRAs, 401(k)s, 403(b)s, and other tax-deferred retirement plans. These rules ensure that the government eventually collects taxes on the pre-tax contributions and earnings that have grown tax-deferred over the years. Understanding RMD rules is crucial for retirement planning and avoiding costly penalties.

What is a Required Minimum Distribution?

An RMD is the minimum amount you must withdraw from your retirement account each year once you reach a certain age. The IRS requires these distributions to prevent individuals from indefinitely deferring taxes on their retirement savings. The amount is calculated based on your account balance and life expectancy, using tables published by the IRS.

RMDs apply to most retirement accounts, including:

  • Traditional IRAs: Individual Retirement Accounts with pre-tax contributions
  • SEP IRAs: Simplified Employee Pension plans
  • SIMPLE IRAs: Savings Incentive Match Plan for Employees
  • 401(k) plans: Employer-sponsored retirement plans
  • 403(b) plans: Tax-sheltered annuity plans for certain employees
  • 457(b) plans: Deferred compensation plans for government employees
  • Other qualified retirement plans: Profit-sharing plans, defined benefit plans

Important Exception: Roth IRAs do not require RMDs during the original owner's lifetime. However, beneficiaries of inherited Roth IRAs may be subject to RMD rules.

When Must You Start Taking RMDs?

The age at which you must begin taking RMDs has changed due to recent legislation. The SECURE Act of 2019 and SECURE 2.0 Act of 2022 raised the RMD starting age:

  • Born before July 1, 1949: RMDs begin at age 70½
  • Born July 1, 1949 to December 31, 1950: RMDs begin at age 72
  • Born January 1, 1951 to December 31, 1959: RMDs begin at age 73
  • Born January 1, 1960 or later: RMDs begin at age 75

Your first RMD must be taken by April 1 of the year following the year you reach your RMD age. This is called your "required beginning date." However, all subsequent RMDs must be taken by December 31 each year. If you delay your first RMD until April 1, you'll need to take two distributions that year (one for the previous year and one for the current year), which could push you into a higher tax bracket.

How to Calculate Your RMD

The IRS provides specific formulas and life expectancy tables to calculate your RMD. Our calculator uses the most current tables updated in 2022, which reflect longer life expectancies. The basic formula is:

RMD = Account Balance (December 31 of previous year) ÷ Life Expectancy Factor

The life expectancy factor comes from one of three IRS tables:

  • Uniform Lifetime Table: Used by most account owners (assumes beneficiary is 10 years younger)
  • Joint Life and Last Survivor Expectancy Table: Used when spouse is sole beneficiary and more than 10 years younger
  • Single Life Expectancy Table: Used by beneficiaries of inherited accounts

SECURE Act and SECURE 2.0 Changes

The SECURE Act of 2019 and SECURE 2.0 Act of 2022 made significant changes to retirement account rules:

SECURE Act (2019) Key Changes:

  • Raised the RMD age from 70½ to 72 for those born after June 30, 1949
  • Eliminated the "stretch IRA" for most non-spouse beneficiaries, requiring account depletion within 10 years
  • Allowed contributions to traditional IRAs past age 70½ if still earning income

SECURE 2.0 Act (2022) Key Changes:

  • Further increased RMD age to 73 (for those born 1951-1959) and 75 (for those born in 1960 or later)
  • Reduced the penalty for missing RMDs from 50% to 25% (or 10% if corrected timely)
  • Updated IRS life expectancy tables to reflect longer life spans
  • Increased QCD (Qualified Charitable Distribution) limits with inflation adjustments
  • Exempted Roth 401(k) accounts from RMDs starting in 2024

RMD Rules for Different Account Types

Traditional IRAs and Most Retirement Plans

For traditional IRAs and most qualified retirement plans, RMDs must begin at age 73 or 75 (depending on birth year). You must calculate and withdraw the RMD separately for each IRA you own, but you can take the total amount from one or more of your IRAs. For 401(k) plans, the RMD must be withdrawn from each plan separately.

Employer Plans While Still Working

If you're still working after reaching your RMD age, you may be able to delay RMDs from your current employer's 401(k) plan (but not IRAs) until April 1 following the year you retire. This exception doesn't apply if you own 5% or more of the company. You must still take RMDs from any previous employer plans and all IRAs.

Multiple Accounts

If you have multiple retirement accounts of the same type, you can aggregate your RMDs. For example, if you have three traditional IRAs, you can calculate the RMD for each, add them together, and withdraw the total from one or more accounts. However, 401(k) RMDs must be taken from each plan separately and cannot be aggregated.

Inherited IRA RMD Rules

Inherited IRA rules are complex and depend on your relationship to the original account owner and when they passed away. The SECURE Act made significant changes:

Spousal Beneficiaries

Surviving spouses have the most flexible options:

  • Treat the IRA as their own (most common option)
  • Roll it over into their own IRA
  • Remain a beneficiary and use their life expectancy for RMDs
  • Take distributions over the deceased spouse's remaining life expectancy

Non-Spouse Beneficiaries (Most Common)

For deaths after December 31, 2019, most non-spouse beneficiaries must withdraw the entire account within 10 years of the owner's death. This is called the "10-year rule." There are no annual RMDs during the 10 years, but the account must be depleted by December 31 of the 10th year.

Eligible Designated Beneficiaries (Exceptions)

Certain beneficiaries can still "stretch" distributions over their life expectancy:

  • Surviving spouse
  • Minor children of the account owner (until age of majority, then 10-year rule applies)
  • Disabled individuals
  • Chronically ill individuals
  • Individuals not more than 10 years younger than the account owner

Penalties for Missing RMDs

Missing an RMD or withdrawing less than the required amount results in severe penalties. Previously, the penalty was 50% of the amount not withdrawn. Under SECURE 2.0, the penalties are:

  • Standard Penalty: 25% excise tax on the amount you failed to withdraw
  • Corrected Penalty: Reduced to 10% if you withdraw the missed amount and file Form 5329 during the correction window

For example, if your RMD was $20,000 and you only withdrew $10,000, the shortfall is $10,000. The penalty would be $2,500 (25% of $10,000), or $1,000 if corrected timely. These penalties are in addition to the regular income tax you owe on the distribution.

How to Correct a Missed RMD

If you discover you missed an RMD:

  1. Withdraw the missed amount as soon as possible
  2. File Form 5329 with your tax return for each year you missed an RMD
  3. Request a waiver of the penalty by attaching a statement explaining the error
  4. The IRS often waives penalties for reasonable cause, especially first-time mistakes

Tax Implications of RMDs

RMDs are treated as ordinary income and taxed at your marginal tax rate. This can significantly impact your tax situation:

  • Income Tax: RMDs add to your adjusted gross income (AGI)
  • Medicare Premiums: Higher AGI can increase Medicare Part B and Part D premiums (IRMAA)
  • Social Security Taxation: RMDs may cause more of your Social Security benefits to be taxable
  • Tax Bracket: Large RMDs could push you into a higher tax bracket
  • State Taxes: Most states also tax RMDs as ordinary income

Tax Withholding Options

When taking an RMD, you can request that taxes be withheld:

  • Federal Withholding: Default is 10% for IRA distributions (optional for IRAs, mandatory 20% for 401(k) rollovers)
  • State Withholding: Varies by state
  • No Withholding: You can opt out and pay estimated taxes quarterly instead

Strategies to Minimize RMD Impact

While you can't avoid RMDs, several strategies can help minimize their tax impact:

1. Qualified Charitable Distributions (QCDs)

If you're 70½ or older, you can transfer up to $105,000 (2024 limit, indexed for inflation) directly from your IRA to a qualified charity. QCDs:

  • Satisfy your RMD requirement
  • Are excluded from taxable income (better than a tax deduction)
  • Don't require itemizing deductions to benefit
  • Can reduce your AGI, potentially lowering Medicare premiums

2. Roth Conversions Before RMDs Begin

Converting traditional IRA funds to a Roth IRA before your RMD age can:

  • Reduce future RMD amounts
  • Provide tax-free growth in the Roth account
  • Eliminate RMDs on converted amounts (Roth IRAs have no RMDs during owner's lifetime)
  • Potentially lower lifetime taxes if done in lower tax years

3. Strategic Withdrawal Timing

Consider taking distributions in years when your income is lower:

  • Before age 73/75 to spread out tax liability
  • In years with lower income (early retirement, sabbatical)
  • To avoid two distributions in one year (first RMD by April 1)

4. Invest RMDs You Don't Need

If you don't need the RMD income for living expenses:

  • Invest in a taxable brokerage account
  • Use for Roth IRA contributions (if you have earned income and are under income limits)
  • Gift to family members (consider gift tax rules)
  • Fund a 529 plan for education expenses

5. Aggregate Multiple Accounts

Consolidating multiple IRAs can simplify RMD calculations and reduce administrative burden. Consider rolling over old 401(k)s into an IRA or consolidating multiple IRAs.

Example RMD Calculations

Example 1: Standard Traditional IRA

Maria is 74 years old and has a traditional IRA with a balance of $500,000 on December 31 of the previous year. Using the Uniform Lifetime Table, her life expectancy factor at age 74 is 25.5.

  • Account Balance: $500,000
  • Life Expectancy Factor: 25.5
  • RMD: $500,000 ÷ 25.5 = $19,607.84

Maria must withdraw at least $19,607.84 by December 31. If she's in the 22% tax bracket, she'll owe approximately $4,313.72 in federal income tax.

Example 2: Younger Spouse as Beneficiary

John is 75 years old with a $750,000 IRA. His wife Susan is 58 (17 years younger) and is the sole beneficiary. Because Susan is more than 10 years younger, John uses the Joint Life and Last Survivor Expectancy Table instead of the Uniform Lifetime Table. At ages 75 and 58, the factor is 30.6.

  • Account Balance: $750,000
  • Life Expectancy Factor: 30.6 (Joint Life Table)
  • RMD: $750,000 ÷ 30.6 = $24,509.80

John's RMD is $24,509.80, which is lower than it would be using the Uniform Lifetime Table (approximately $30,488) because of the longer joint life expectancy.

Example 3: Multiple Accounts

Sarah has three traditional IRAs at age 73:

  • IRA #1: $200,000 (life expectancy 26.5) = $7,547.17 RMD
  • IRA #2: $150,000 (life expectancy 26.5) = $5,660.38 RMD
  • IRA #3: $100,000 (life expectancy 26.5) = $3,773.58 RMD
  • Total RMD: $16,981.13

Sarah can take the entire $16,981.13 from one IRA, split it across all three, or any combination, as long as the total withdrawn meets or exceeds the combined RMD amount.

Common RMD Mistakes to Avoid

  • Missing the deadline: RMDs must be taken by December 31 (except first RMD by April 1)
  • Using the wrong account balance: Always use December 31 balance from previous year
  • Forgetting about all accounts: Remember to calculate RMDs for every retirement account
  • Withdrawing from the wrong account: 401(k) RMDs must come from each specific plan
  • Not updating beneficiaries: Outdated beneficiary designations can create tax problems
  • Ignoring inherited IRAs: Different rules apply to inherited accounts
  • Taking two RMDs in one year: Consider taking your first RMD by December 31, not waiting until April 1

When to Use This RMD Calculator

Our RMD calculator is designed to help you:

  • Calculate your annual Required Minimum Distribution accurately
  • Determine when you need to start taking RMDs based on your birth date
  • Plan for tax implications with withholding estimates
  • Project future RMDs for retirement planning
  • Understand the penalty for missing an RMD
  • Compare scenarios with different account balances and ages
  • Plan charitable giving strategies with QCDs

Remember that RMD rules are complex, and this calculator provides estimates based on current IRS tables and regulations. For personalized advice, especially regarding inherited IRAs, multiple accounts, or unique situations, consult with a qualified tax professional or financial advisor. Proper RMD planning is essential for minimizing taxes, avoiding penalties, and making the most of your retirement savings.