Required Minimum Distribution (RMD) Calculator

What Is a Required Minimum Distribution (RMD)?

The IRS requires you to withdraw a minimum amount from tax-deferred retirement accounts — traditional IRAs, 401(k)s, 403(b)s, SEP IRAs, and SIMPLE IRAs — each year starting at age 73 under the SECURE 2.0 Act. These withdrawals are called Required Minimum Distributions (RMDs), and they're taxed as ordinary income.

The purpose is simple: the government gave you a tax break when you contributed to these accounts, and now it wants its share. Failure to take your full RMD results in a 25% excise tax on the shortfall — reduced from the previous 50% penalty under SECURE 2.0, and further reduced to 10% if you correct the mistake within two years.

When Do RMDs Start?

Under current law (SECURE 2.0 Act), RMDs begin at age 73 for people born between 1951 and 1959. For those born in 1960 or later, the starting age increases to 75, beginning in 2033.

There's a first-year exception: you can delay your very first RMD until April 1 of the following year. But be careful — if you delay, you'll owe two RMDs in that second year (the delayed first-year RMD plus the current year's). That double withdrawal could push you into a much higher tax bracket.

Roth IRAs are the exception — they don't require RMDs for the original account owner during their lifetime. However, inherited Roth IRAs do have distribution requirements for beneficiaries under certain rules.

How Is My RMD Calculated?

The formula is straightforward: take your account balance as of December 31 of the prior year and divide it by the distribution period from the IRS life expectancy table for your age. The result is your minimum required withdrawal for the year.

There are two tables: the Uniform Lifetime Table (used by most people) and the Joint Life and Last Survivor Expectancy Table (used when your spouse is your sole beneficiary and is more than 10 years younger). The Joint Life Table gives a longer distribution period, which means a smaller RMD. As you age, the distribution period shrinks each year, which means the RMD as a percentage of your balance increases over time.

Strategies to Minimize RMD Taxes

Qualified Charitable Distributions (QCDs) let you donate up to $105,000 directly from your IRA to a qualified charity. The donation counts toward your RMD but isn't included in your taxable income — one of the most powerful tax strategies available to retirees.

Roth conversions before age 73 can reduce the size of your traditional IRA and therefore your future RMDs. You'll pay taxes on the conversion, but the money then grows tax-free in the Roth with no future RMD requirement. Timing matters — many advisors recommend converting during years when your income is lower.

Spreading withdrawals throughout the year (rather than taking one lump sum in December) can help with cash flow planning and estimated tax payments. A financial advisor can help you build a tax-efficient withdrawal strategy →

What Happens If I Don't Take My RMD?

Missing your RMD triggers a 25% excise tax on the amount you should have withdrawn but didn't. Under SECURE 2.0, this drops to 10% if you file a corrected return and take the missed distribution within two years. The IRS tracks your required distributions through Form 5498, which your account custodian files annually.

If you realize you missed an RMD, take the distribution as soon as possible and file Form 5329 with your tax return. The IRS has been known to waive the penalty for reasonable cause, especially for first-time mistakes — but don't count on it. Set a calendar reminder and consider automating your withdrawals through your custodian.