RMD Calculator

A required minimum distribution (RMD) is the minimum amount the IRS requires you to withdraw each year from tax-deferred retirement accounts once you reach a certain age. Because traditional IRAs, 401(k)s and similar accounts grow tax-deferred — you never paid income tax on the contributions or growth — the government eventually requires withdrawals so the money is taxed. RMDs are the mechanism that ensures these accounts don't grow tax-free indefinitely.

Under current rules, RMDs generally begin at age 73 (the age has risen over time through recent legislation). They apply to traditional IRAs, SEP and SIMPLE IRAs, and workplace plans like 401(k)s and 403(b)s. Notably, Roth IRAs are exempt during the original owner's lifetime, since that money was already taxed — one of the Roth's significant advantages.

The calculation is straightforward: divide your account balance as of December 31 of the previous year by a life-expectancy factor from the IRS Uniform Lifetime Table, which corresponds to your age. The factor decreases as you get older, so the percentage you must withdraw rises each year — starting around 3.8% in your early seventies and climbing steadily after that. If you have multiple accounts, the rules on aggregating RMDs differ between IRAs and 401(k)s, so it's worth confirming how yours combine.

The stakes for getting it right are real. Failing to take your full RMD has historically triggered one of the harshest penalties in the tax code — a substantial excise tax on the amount you should have withdrawn but didn't (recent law reduced it, and it can be further reduced if corrected promptly, but it remains significant). RMDs are also taxed as ordinary income in the year you take them, which can affect your tax bracket, Medicare premiums and the taxation of Social Security, so planning withdrawals thoughtfully matters.

Some retirees use strategies to manage RMDs — qualified charitable distributions that satisfy the RMD without adding taxable income, or Roth conversions earlier in retirement to shrink future RMDs. This calculator gives you the core number: your required withdrawal for the year based on your balance and age. For multi-account situations and tax planning, a financial or tax advisor can help you optimize. Always verify the current RMD age and rules, as they have changed in recent years.