Required Minimum Distribution (RMD) Calculator

What Is a Required Minimum Distribution (RMD)?

A Required Minimum Distribution (RMD) is the minimum amount the IRS requires you to withdraw each year from tax-deferred retirement accounts such as Traditional IRAs, 401(k)s, 403(b)s, 457(b)s, and other qualified plans. RMDs ensure that tax-deferred savings are eventually subject to income tax rather than being passed on indefinitely.

Under the SECURE 2.0 Act of 2022, the RMD starting age increased to 73 for individuals born between 1951 and 1959, and will rise to 75 for those born in 1960 or later. Roth IRAs are exempt from RMDs during the owner's lifetime, though Roth 401(k)s were subject to RMDs until 2024 when the SECURE 2.0 Act eliminated that requirement.

How to Calculate Your RMD

The IRS formula for calculating your RMD is straightforward:

1. 1

   Find Your Prior-Year Account Balance

   Use the fair market value of your retirement account as of December 31 of the previous year. If you have multiple IRAs, you can total them and take the combined RMD from any one or more of those IRAs.

2. 2

   Look Up Your Distribution Period

   Find your age as of December 31 of the distribution year in the IRS Uniform Lifetime Table (or Joint Life Table if your sole beneficiary is a spouse more than 10 years younger). The table provides a life expectancy divisor.

3. 3

   Divide Balance by Distribution Period

   The result is your required minimum distribution for the year. You may always withdraw more than the RMD, but never less without facing a penalty.

RMD Deadlines and Penalties

Your first RMD must be taken by April 1 of the year following the year you turn the applicable RMD age (73 or 75). 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 distributions in that calendar year.

Failing to take your full RMD triggers a penalty tax. Under SECURE 2.0, the penalty was reduced from 50% to 25% of the shortfall (and further reduced to 10% if corrected within two years). Despite the lower penalty, missing an RMD remains costly and should be avoided.

Which Accounts Require RMDs?

IRS Uniform Lifetime Table (2022+)

The table below shows the distribution period (life expectancy divisor) for each age. This is the standard table used by most account owners. A higher divisor means a smaller required withdrawal.

RMD Strategies to Reduce Your Tax Burden

• Qualified Charitable Distributions (QCDs): If you are 70½ or older, you can donate up to $105,000 (2024 limit, indexed for inflation) directly from your IRA to a qualified charity. QCDs count toward your RMD but are excluded from taxable income.
• Roth Conversions: Converting traditional IRA assets to a Roth IRA before RMDs begin reduces future RMD amounts. You pay tax on the conversion now but eliminate RMDs on those funds permanently.
• Still Working Exception: If you are still employed and do not own more than 5% of the company, you may delay RMDs from your current employer's 401(k) until you retire.
• Aggregate IRA RMDs: If you own multiple Traditional IRAs, calculate the RMD for each but withdraw the total from whichever account(s) you choose. This gives flexibility to manage asset allocation.