RMD Calculator
Calculate Required Minimum Distribution (RMD) withdrawal amounts from traditional IRAs and 401(k)s based on IRS Uniform Lifetime Table life expectancy factors under SECURE 2.0.
RMD Output
Why the government eventually makes you withdraw
Tax-deferred accounts cannot defer forever. Required minimum distributions are the mechanism that collects the deferred tax: once you reach the trigger age, a minimum amount must come out of traditional IRAs and most workplace plans each year and be reported as income. The age has moved upward through recent legislation, so confirm the current one for your birth year rather than assuming.
The calculation is simple in shape. Take the account balance as of 31 December of the previous year and divide by a life-expectancy factor from the IRS Uniform Lifetime Table. Because the factor shrinks as you age, the required percentage climbs every year — starting around 4% and rising steadily through your seventies and eighties. Each account is calculated separately, though IRAs may be aggregated and the total taken from any one of them. Workplace plans generally may not be aggregated that way.
The penalty for missing one is severe — a substantial excise tax on the shortfall, reduced if corrected promptly. The first distribution can be deferred to 1 April of the following year, but doing so stacks two distributions into one tax year, which frequently pushes people into a higher bracket. Roth IRAs are exempt during the original owner's lifetime, which is a large part of their appeal late in retirement.
Frequently asked questions
At what age do RMDs start?
Under current US tax law, Required Minimum Distributions (RMDs) generally start at age 73 for traditional tax-deferred accounts.
When do required minimum distributions start?
Under SECURE 2.0, at age 73 for those who reach 72 after 2022, rising to 75 in 2033. The first distribution may be deferred to 1 April of the following year, but doing so means taking two in one tax year. Roth IRAs have no RMDs during the owner's lifetime.
How is an RMD calculated?
Prior-year 31 December account balance divided by a life expectancy factor from the IRS Uniform Lifetime Table. A different table applies if your sole beneficiary is a spouse more than ten years younger. Each account is calculated separately, though IRAs may be aggregated for withdrawal.
What is the penalty for missing an RMD?
SECURE 2.0 reduced it from 50% to 25% of the shortfall, and to 10% if corrected promptly within a defined window. The penalty can sometimes be waived for reasonable cause by filing Form 5329 with an explanation. Given the stakes, this is an area to confirm with a tax professional.