RMD Calculator

Required Minimum Distributions (RMDs) are mandatory annual withdrawals from tax-deferred retirement accounts. The IRS requires them to ensure the government eventually collects taxes on pre-tax retirement savings.

• Account Balance: use the balance as of December 31 of the prior year. If you have multiple accounts (a traditional IRA and a 401k, for example), calculate the RMD for each separately.
• Your Age: use your age as of December 31 of the current year. RMDs start at age 73 (changed from 72 by the SECURE 2.0 Act).
• Account Type: traditional IRAs, 401k, 403b, and SIMPLE IRA accounts all require RMDs. Roth IRAs do not. Roth 401k plans also required RMDs until the SECURE 2.0 Act eliminated that requirement starting in 2024.

You can always withdraw more than the RMD amount. The RMD is just the minimum required to avoid the penalty.

The formula is straightforward:

RMD = Account Balance / Distribution Period

The distribution period comes from the IRS Uniform Lifetime Table, which is based on your life expectancy. At age 73, the distribution period is 26.5 years, so your RMD is 1/26.5 = 3.77% of your balance. At 80, it is 1/20.2 = 4.95%. At 90, it is 1/12.2 = 8.20%.

Example: $500,000 balance at age 73. Distribution period = 26.5. RMD = $500,000 / 26.5 = $18,868. This amount is taxed as ordinary income.

Penalty for missing the RMD: if you fail to take your full RMD by the deadline, the IRS charges a 25% excise tax on the amount you should have withdrawn (reduced from 50% under SECURE 2.0). On an $18,868 RMD, missing it entirely costs $4,717 in penalty plus still owing the taxes.

A different table applies if your sole beneficiary is a spouse more than 10 years younger than you. That table has longer distribution periods and produces smaller RMDs.