RMD Calculator

A Required Minimum Distribution (RMD) is the minimum amount the IRS requires you to withdraw each year from tax-deferred retirement accounts like traditional IRAs, 401(k)s, and similar plans once you reach a certain age. RMDs ensure the government can eventually collect taxes on tax-deferred savings. The amount is calculated by dividing your prior-year-end account balance by a life expectancy factor from the IRS Uniform Lifetime Table.

Under SECURE 2.0, RMDs begin at age 73 for people born between 1951 and 1959, and age 75 for those born in 1960 or later. You can delay your first RMD until April 1 of the year after you reach RMD age. After the first year, all subsequent RMDs must be taken by December 31 of each year. If you delay your first RMD to April 1, you will need to take two RMDs in that same year.

Your RMD is calculated by dividing your December 31 account balance from the prior year by the distribution period from the IRS Uniform Lifetime Table that corresponds to your age this year. For example, if you are 75 and your prior-year-end balance was $500,000, your distribution period is 24.6, and your RMD is $500,000 ÷ 24.6 = $20,325. You can always withdraw more than the RMD, but never less.

The penalty for missing an RMD is 25% of the amount not withdrawn, reduced to 10% if corrected within two years (SECURE 2.0). This is one of the steepest IRS penalties, so it's critical to calculate your RMD accurately and withdraw on time. The penalty may be waived if you can show reasonable cause.

RMDs apply to traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k), 403(b), and 457(b) plans. Roth IRAs do not require RMDs during the owner's lifetime. Roth 401(k) accounts do require RMDs unless you are still working, but you can avoid this by rolling over to a Roth IRA. Inherited IRAs have their own RMD rules that differ from owner IRAs.

Yes, you can always withdraw more than the required minimum. The RMD is the floor, not the ceiling. However, larger withdrawals may increase your taxable income and could push you into a higher tax bracket. Some retirees take just the RMD to minimize taxes, while others withdraw more for living expenses.

For IRAs, you can aggregate RMDs: calculate the RMD for each IRA, but you can take the total from one or more IRAs in any combination. For 401(k), 403(b), and 457(b) plans, RMDs must be taken separately from each account. You cannot satisfy a 401(k) RMD with an IRA withdrawal or vice versa.

The IRS Uniform Lifetime Table (Table III) is the most commonly used table for calculating RMDs. It provides a distribution period for each age from 73 to 120+. The distribution period is based on life expectancy and is used as the divisor in the RMD calculation. Most account holders use this table unless their spouse is more than 10 years younger and is the sole beneficiary, in which case the Joint Life Table may be used.

This calculator uses the IRS Uniform Lifetime Table, which applies to most account holders. If your spouse is more than 10 years younger than you and is the sole beneficiary of your retirement account, you may use the Joint and Last Survivor Table instead, which generally results in a lower RMD. Consult a tax advisor for your specific situation.