RMD Calculator
Calculate your Required Minimum Distribution from traditional IRA, 401(k), and inherited retirement accounts.
Projection Settings
Required Minimum Distribution
$18,868
How Your RMD Was Calculated
Formula: Account Balance ÷ Life Expectancy Factor = RMD
$500,000 ÷ 26.5 = $18,868
Important RMD Deadlines
- First RMD: April 1 of the year following the year you reach RMD age
- Subsequent RMDs: December 31 of each year
- Penalty for Missing: 25% excise tax on amount not withdrawn (reduced from 50% in 2023)
Tax Considerations
- • RMDs are taxed as ordinary income in the year withdrawn
- • Consider spreading withdrawals across the year to manage tax withholding
- • You may satisfy RMDs from one IRA even if you have multiple IRAs
- • 401(k) RMDs must be taken separately from each plan
- • Consider a Qualified Charitable Distribution (QCD) if age 70.5+ to reduce taxable income
Related Calculators
About This Calculator
Required Minimum Distributions (RMDs) are mandatory annual withdrawals that the IRS requires from traditional retirement accounts once you reach a certain age. Understanding and properly calculating your RMD is essential to avoid steep penalties and optimize your retirement tax strategy. Whether you have a traditional IRA, 401(k), 403(b), or inherited retirement account, this calculator helps you determine exactly how much you must withdraw each year.
The RMD rules have undergone significant changes in recent years. The SECURE Act of 2019 raised the RMD starting age from 70.5 to 72, and SECURE Act 2.0 in 2022 further increased it to 73 for those born between 1951-1959, and to 75 for those born in 1960 or later. These changes mean more years of tax-deferred growth before mandatory distributions begin, but also require careful planning to avoid taking larger distributions later in life when you might be in a higher tax bracket.
The RMD Calculator uses the current IRS life expectancy tables (updated in 2022) to calculate your distribution amount. Simply enter your account balance as of December 31 of the prior year, your age at year-end, and select your account type. For those with a spouse as sole beneficiary who is more than 10 years younger, the calculator uses the Joint Life and Last Survivor Table, which results in smaller RMDs. For inherited accounts, different rules apply based on your relationship to the original owner and whether the 10-year rule applies.
Missing an RMD carries severe consequences: a 25% excise tax on the amount you should have withdrawn (reduced from 50% starting in 2023). Planning ahead with multi-year projections helps you anticipate future RMDs and manage your tax liability effectively. For comprehensive retirement planning, explore our 401(k) Calculator and Retirement Calculator. If you are considering converting traditional funds to Roth to reduce future RMDs, see our Roth Conversion Calculator.
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How to Use the RMD Calculator
- 1Select your account type: Traditional IRA, 401(k)/403(b)/457, Inherited IRA, or Inherited 401(k).
- 2Enter your account balance as of December 31 of the prior year (this is the value used for RMD calculations).
- 3Input your age at the end of the distribution year (the year you are taking the RMD).
- 4For non-inherited accounts, enter your birth year to determine your RMD starting age under SECURE Act 2.0 rules.
- 5If your spouse is your sole beneficiary and more than 10 years younger, check the box and enter their age to use the Joint Life Table.
- 6For inherited accounts, select your relationship to the original owner and enter the year of death and their age at death.
- 7Adjust the projection settings to see a multi-year RMD schedule with assumed account growth rates.
- 8Review your calculated RMD amount, the life expectancy factor used, and the percentage of your balance required.
Understanding Required Minimum Distributions
Required Minimum Distributions exist because traditional retirement accounts provide tax-deferred growth. The government deferred collecting taxes when you contributed and while the money grew, so RMDs ensure you eventually pay taxes on these funds during your lifetime.
Key RMD Concepts
The December 31 Rule: Your RMD is calculated using your account balance on December 31 of the prior year. If you had $500,000 on December 31, 2025, that is the balance used for your 2026 RMD, regardless of market changes in 2026.
Life Expectancy Factor: The IRS provides tables showing how many years you are expected to live based on your age. Your RMD is simply your account balance divided by this factor.
Aggregation Rules for IRAs: If you have multiple traditional IRAs, you calculate the RMD for each but can take the total from any one or combination of your IRAs. However, 401(k)s must be treated separately.
The RMD Formula
| Component | Description |
|---|---|
| Prior Year Balance | Account value on December 31 of previous year |
| ÷ Life Expectancy Factor | From IRS Uniform or Joint Life Table |
| = RMD Amount | Minimum you must withdraw |
Example Calculation
For a 75-year-old with $500,000 balance:
- Life expectancy factor from Uniform Table: 24.6
- RMD calculation: $500,000 ÷ 24.6 = $20,325
This person must withdraw at least $20,325 during the year. They can always withdraw more, but withdrawing less triggers the penalty.
SECURE Act 2.0: New RMD Ages
The SECURE Act 2.0, passed in December 2022, brought significant changes to RMD rules that benefit most retirees by allowing more years of tax-deferred growth.
RMD Starting Age by Birth Year
| Birth Year | RMD Starting Age | First RMD Year (if born Jan 1) |
|---|---|---|
| 1950 or earlier | 72 (was 70.5) | Already taking RMDs |
| 1951-1959 | 73 | 2024-2032 |
| 1960 or later | 75 | 2035 or later |
Impact of the Changes
For Someone Born in 1955:
- Old rule (70.5): First RMD in 2026 at age 70.5
- SECURE Act (72): First RMD in 2027 at age 72
- SECURE 2.0 (73): First RMD in 2028 at age 73
This provides 2 additional years of tax-deferred growth.
For Someone Born in 1965:
- Old rule (70.5): First RMD in 2036
- SECURE 2.0 (75): First RMD in 2040
This provides 4.5 additional years of tax-deferred growth, potentially worth tens of thousands of dollars.
Reduced Penalty for Missed RMDs
SECURE Act 2.0 also reduced the penalty for missed RMDs:
- Old penalty: 50% excise tax on amount not withdrawn
- New penalty: 25% excise tax
- Corrected within 2 years: Only 10% penalty
This reduced penalty provides more grace for honest mistakes while still incentivizing compliance.
Different Account Types and RMD Rules
Not all retirement accounts have the same RMD requirements. Understanding the differences helps with strategic planning.
Accounts Subject to RMDs
| Account Type | RMDs Required? | Notes |
|---|---|---|
| Traditional IRA | Yes | Can aggregate across multiple IRAs |
| 401(k) | Yes | Must take from each plan separately |
| 403(b) | Yes | Can aggregate across multiple 403(b)s |
| 457(b) | Yes | Government plans only; can aggregate |
| SEP IRA | Yes | Treated as traditional IRA |
| SIMPLE IRA | Yes | Treated as traditional IRA |
Accounts NOT Subject to RMDs
| Account Type | RMDs Required? | Notes |
|---|---|---|
| Roth IRA | No | No RMDs during owner's lifetime |
| Roth 401(k) | Previously yes | No RMDs starting 2024 (SECURE 2.0) |
| Health Savings Account | No | Not technically retirement account |
Still Working Exception
If you are still working at age 73+ and have a 401(k) with your current employer, you can delay RMDs from that specific plan until you retire. This exception:
- Only applies to current employer's plan (not old 401(k)s)
- Does not apply to IRAs
- Does not apply if you own more than 5% of the company
Aggregation Strategy
Since IRA RMDs can be satisfied from any traditional IRA:
- Calculate RMD for each IRA
- Sum the totals
- Withdraw from whichever account is most tax-efficient
- Example: Take entire RMD from a bond-heavy IRA, leaving stock IRA to grow
Inherited IRA Rules and the 10-Year Rule
Inherited retirement accounts have complex RMD rules that changed significantly under the SECURE Act. The rules depend on when the original owner died, your relationship to them, and whether they had already started RMDs.
Beneficiary Categories
Eligible Designated Beneficiaries (EDBs) can still use the stretch IRA:
- Surviving spouse
- Minor children (until age of majority)
- Disabled or chronically ill individuals
- Individuals not more than 10 years younger than the deceased
Designated Beneficiaries (non-EDB) must follow the 10-year rule:
- Adult children
- Grandchildren
- Other family members
- Friends
- Most trusts
The 10-Year Rule Explained
For deaths after 2019, non-eligible designated beneficiaries must empty the inherited account by December 31 of the 10th year following death.
| Original Owner Status | Annual RMDs Required? | 10-Year Empty Deadline? |
|---|---|---|
| Died before RMD age | No annual RMDs | Yes - must empty by year 10 |
| Died after RMD age | Yes - annual RMDs required | Yes - must empty by year 10 |
Important 2024 Update: The IRS clarified that if the original owner died after their RMD beginning date, beneficiaries MUST take annual RMDs in years 1-9, not just empty by year 10.
Spouse Beneficiary Options
Surviving spouses have the most flexibility:
- Spousal rollover: Treat as your own IRA (no RMDs until your own RMD age)
- Remain as beneficiary: Delay RMDs until deceased would have reached RMD age
- 10-year rule: Optional, may be beneficial for younger spouses
- Lump sum: Take everything immediately (triggers large tax bill)
Example: Adult Child Inheriting
Sarah inherits her father's IRA in 2024 when he was 78 (already taking RMDs):
- Sarah must take annual RMDs in 2025-2033
- Account must be emptied by December 31, 2034
- Annual RMDs based on Sarah's single life expectancy (reducing each year)
- Remaining balance can be distributed in year 10
Penalties for Missing RMDs
Missing or under-distributing your RMD triggers significant penalties. Understanding these consequences emphasizes the importance of proper planning.
The Excise Tax Penalty
| Situation | Penalty Rate | Example ($10,000 missed RMD) |
|---|---|---|
| Standard penalty (post-2022) | 25% | $2,500 penalty |
| Corrected within correction window | 10% | $1,000 penalty |
| Pre-2023 rules | 50% | $5,000 penalty |
The Correction Window
SECURE Act 2.0 introduced a correction window that reduces the penalty to 10% if you:
- Take the missed RMD
- File Form 5329 with the penalty calculation
- Do so before the IRS notices or within 2 years
How to Request a Penalty Waiver
If you missed an RMD due to reasonable cause, you can request a waiver:
- Take the missed distribution immediately
- File Form 5329 with your tax return
- Attach a letter explaining:
- What caused you to miss the RMD
- Steps taken to prevent future misses
- That the shortfall has been corrected
- Pay zero penalty on the form (calculate but enter zero)
- Keep documentation in case of IRS inquiry
Common reasonable causes the IRS accepts:
- Serious illness
- Financial institution error
- Incorrect advice from tax professional
- Death of family member during RMD year
- First-year RMD confusion
Avoiding Missed RMDs
| Strategy | Implementation |
|---|---|
| Automatic distributions | Set up monthly or quarterly auto-withdrawals |
| Calendar reminders | Schedule multiple reminders throughout the year |
| Tax professional review | Annual check-in with advisor before year-end |
| Buffer time | Take RMD by November to allow for errors |
| Consolidated accounts | Fewer accounts = fewer calculations |
Strategies to Minimize RMDs and Taxes
While you cannot avoid RMDs entirely, strategic planning can minimize their tax impact and preserve more of your retirement wealth.
Roth Conversions Before RMD Age
Converting traditional IRA funds to Roth before RMDs begin reduces future required distributions:
| Strategy | Benefit |
|---|---|
| Convert in low-income years | Pay taxes at lower bracket |
| Fill up current bracket | Convert enough to top of 22% or 24% bracket |
| Spread over multiple years | Avoid jumping to higher brackets |
| Consider state taxes | Convert while in lower-tax state if planning to move |
Use our Roth Conversion Calculator to model different scenarios.
Qualified Charitable Distributions (QCDs)
If you are 70.5 or older, you can donate up to $105,000 (2024 limit, indexed for inflation) directly from your IRA to charity:
| QCD Benefit | Explanation |
|---|---|
| Satisfies RMD | Donation counts toward your RMD |
| Not taxable income | QCD is excluded from AGI |
| No itemizing required | Benefit even with standard deduction |
| Reduces Medicare premiums | Lower AGI = lower IRMAA surcharges |
Tax-Smart Withdrawal Sequencing
The order you withdraw from accounts affects total lifetime taxes:
Before RMDs Begin:
- Taxable accounts first (preferential capital gains rates)
- Tax-deferred accounts to fill lower brackets
- Roth last (let tax-free growth continue)
After RMDs Begin:
- Take required RMDs (mandatory)
- Additional withdrawals from taxable accounts
- Roth accounts only when needed
Other Strategies
| Strategy | How It Works |
|---|---|
| Continue working | Delay 401(k) RMDs (still-working exception) |
| Donate IRA to charity at death | Heirs avoid income tax on inherited IRA |
| Life insurance replacement | Use RMDs to fund policy for heirs |
| Qualified Longevity Annuity Contract (QLAC) | Exclude up to $200,000 from RMD calculations |
| Net Unrealized Appreciation (NUA) | Special treatment for employer stock in 401(k) |
Pro Tips
- 💡Take your first RMD by December 31 of the year you reach RMD age rather than delaying to April 1 to avoid two RMDs in one year.
- 💡Set up automatic RMD distributions from your IRA or 401(k) to never miss a deadline and avoid the 25% penalty.
- 💡Consider Roth conversions in years with lower income to reduce future RMDs and lifetime taxes.
- 💡Use Qualified Charitable Distributions (QCDs) if you are 70.5+ to satisfy RMDs while reducing taxable income.
- 💡Aggregate IRA RMDs strategically by taking them from the account with the worst-performing investments.
- 💡Check your beneficiary designations annually to ensure your accounts pass efficiently and beneficiaries understand the rules.
- 💡Consider a Qualified Longevity Annuity Contract (QLAC) to exclude up to $200,000 from RMD calculations.
- 💡If still working past RMD age, keep funds in your current employer 401(k) to delay those RMDs (does not apply to IRAs).
- 💡Calculate your RMD early in the year and plan quarterly estimated tax payments if needed.
- 💡Review the tax impact of RMDs on Social Security taxation and Medicare premium surcharges (IRMAA).
- 💡Consider life insurance strategies where RMD money funds a policy to replace wealth for heirs tax-efficiently.
- 💡Keep records of all RMD calculations and withdrawals in case of IRS inquiry.
Frequently Asked Questions
Your RMD starting age depends on when you were born. If born in 1950 or earlier, RMDs began at 72 (previously 70.5). If born between 1951-1959, RMDs begin at 73. If born in 1960 or later, RMDs begin at 75. These ages come from the SECURE Act 2.0 passed in 2022. Your first RMD must be taken by April 1 of the year following the year you reach your RMD age. All subsequent RMDs must be taken by December 31 of each year.
