RMD Calculator -- Required Minimum Distribution

What is a Required Minimum Distribution?

A Required Minimum Distribution (RMD) is the minimum amount you must withdraw annually from tax-deferred retirement accounts once you reach a certain age. The IRS requires these withdrawals to ensure that funds in tax-advantaged retirement accounts are eventually subject to income tax.

RMDs are calculated by dividing your account balance (as of December 31 of the prior year) by a life expectancy factor from the IRS Uniform Lifetime Table. As you age, the life expectancy factor decreases, requiring you to withdraw a larger percentage of your account each year.

When Do RMDs Start?

Under the SECURE 2.0 Act, the RMD starting age is:

• Age 73 for individuals who turn 72 after December 31, 2022
• Age 75 for individuals who turn 74 after December 31, 2032 (effective 2033)

Your first RMD must be taken by April 1 of the year following the year you turn 73. All subsequent RMDs must be taken by December 31 of each year. If you delay your first RMD until April 1, you will have to take two distributions in that year (one for the prior year and one for the current year), which may push you into a higher tax bracket.

How RMDs Are Calculated

The RMD formula is straightforward:

RMD = Account Balance / Life Expectancy Factor

For example, if you are age 75 with a $500,000 account balance:

• Account Balance (Dec 31 prior year): $500,000
• Life Expectancy Factor (age 75): 24.6
• RMD: $500,000 / 24.6 = $20,325.20

The life expectancy factor comes from the IRS Uniform Lifetime Table (Table III), which assumes a beneficiary 10 years younger than you. Most people use this table unless their sole beneficiary is a spouse more than 10 years younger (in which case the Joint Life and Last Survivor Expectancy table applies).

Which Accounts Require RMDs?

RMDs are required for the following tax-deferred retirement accounts:

• Traditional IRAs (including SEP and SIMPLE IRAs)
• 401(k) plans
• 403(b) plans
• 457(b) plans
• Profit-sharing plans
• Other defined contribution plans

Roth IRAs do NOT require RMDs during the original owner's lifetime. This is one of the key advantages of Roth IRAs. However, beneficiaries who inherit a Roth IRA are generally subject to distribution rules.

Note: Before 2024, Roth 401(k)s required RMDs, but the SECURE 2.0 Act eliminated this requirement starting in 2024.

Penalties for Missing RMDs

Failing to take an RMD or withdrawing less than the required amount results in a 25% excise tax on the amount not withdrawn. This penalty was reduced from 50% by the SECURE 2.0 Act (effective 2023).

If you correct the error promptly and file IRS Form 5329, the penalty may be reduced to 10%. Even after paying the penalty, you must still withdraw the missed RMD amount and pay ordinary income tax on it.

To avoid penalties, calculate your RMD early in the year and set up automatic withdrawals if needed. Many custodians offer RMD calculation and distribution services.

IRS Uniform Lifetime Table (2024)

The table below shows life expectancy factors from the IRS Uniform Lifetime Table (Table III), updated in 2022 to reflect longer life expectancies. This table applies to most retirement account owners.

Full table available in IRS Publication 590-B, Appendix B, Table III (Uniform Lifetime).

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Privacy & Limitations

• Client-side only. All calculations run entirely in your browser. No account data is sent to any server or stored anywhere.
• Not personalized advice. This calculator uses the standard IRS Uniform Lifetime Table. If your spouse is your sole beneficiary and is more than 10 years younger, different tables apply. Consult a tax professional for personalized guidance.
• Tax estimates are approximate. Actual federal tax depends on total income, deductions, credits, and filing status. State taxes may also apply. Consult a CPA or tax advisor.
• Projections assume constant growth. Actual market returns vary year to year. Use the projection as a planning estimate, not a guarantee.
• Not financial or tax advice. This tool is educational. RMD rules are complex and subject to change. Always consult a qualified tax professional or financial advisor before making retirement distribution decisions.

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