RMD Calculator (Required Minimum Distribution)

A Required Minimum Distribution (RMD) is the minimum amount you must withdraw each year from your tax-deferred retirement accounts, including Traditional IRAs, 401(k)s, 403(b)s, and similar plans. The IRS requires these withdrawals to ensure that tax-deferred retirement savings are eventually taxed as income. Failing to take your full RMD results in a penalty of 25% of the amount not withdrawn (reduced from the previous 50% penalty under the SECURE 2.0 Act).

Under the SECURE 2.0 Act of 2022, the age at which RMDs begin was raised to 73 for individuals who turn 72 after December 31, 2022. This gives your retirement accounts additional years of tax-deferred growth before mandatory withdrawals begin. If you turned 73 in 2024 or later, your first RMD is due by April 1 of the year following the year you turn 73 — though delaying your first RMD means you must take two distributions in that second year.

Your RMD amount is calculated by dividing your retirement account balance as of December 31 of the prior year by a life expectancy factor from the IRS Uniform Lifetime Table. For example, at age 75, the life expectancy factor is 24.6, so a $500,000 balance would require an RMD of $500,000 / 24.6 = $20,325.20. As you age, the life expectancy factor decreases, meaning your RMD percentage increases each year.

The IRS updated the Uniform Lifetime Table effective January 1, 2022, generally resulting in smaller required distributions than under the previous table. The updated table reflects increased life expectancies and allows more money to remain in tax-deferred accounts longer. If your spouse is more than 10 years younger and is the sole beneficiary, you may use the Joint Life and Last Survivor Expectancy Table instead, which produces even smaller RMDs.

Planning your RMD withdrawals strategically can help minimize your overall tax burden in retirement. Since RMDs are taxed as ordinary income, large distributions can push you into higher tax brackets and may increase the taxable portion of your Social Security benefits or trigger higher Medicare premiums under IRMAA. Some retirees choose to take distributions larger than the minimum in lower-income years, or use Qualified Charitable Distributions (QCDs) to satisfy part or all of their RMD while excluding the amount from taxable income.