RMD Calculator
Calculate your Required Minimum Distribution (RMD) from traditional IRA, 401k, and other tax-deferred retirement accounts using current IRS tables.
Total balance as of December 31 of previous year
Your age as of your birthday this year
Spouse's age (only if more than 10 years younger and sole beneficiary)
Your marginal tax rate for tax impact calculation
What is an RMD and when do I have to take it?
RMD (Required Minimum Distribution) is the minimum amount you must withdraw annually from tax-deferred retirement accounts (Traditional IRA, 401k, 403b) starting at age 73 (born 1951-1959) or age 75 (born 1960+). SECURE Act 2.0 changed the age from 72. Roth IRAs have no RMDs during the owner's lifetime. Missing RMDs results in a 25% penalty (reduced to 10% if corrected within 2 years) on the amount not withdrawn.
How is RMD calculated each year?
RMD = Account Balance (Dec 31 prior year) ÷ Life Expectancy Factor. The IRS Uniform Lifetime Table provides life expectancy factors based on your age. At 73, factor is 26.5 (withdraw 3.77%). At 80, factor is 20.2 (withdraw 4.95%). Factors decrease each year, requiring larger percentage withdrawals as you age. Recalculate annually using updated balance and age.
Can I take more than the RMD amount?
Yes! You can withdraw more than the RMD anytime. However, excess withdrawals don't count toward future years' RMDs - each year's RMD must be calculated fresh. Reasons to take more: Need the money, strategic tax planning, reduce future RMDs, estate planning. Remember: all traditional IRA/401k withdrawals are taxable income, potentially affecting Medicare premiums (IRMAA) and Social Security taxation.
What strategies can minimize RMD tax impact?
Strategies: 1) Roth conversions before 73 to reduce future RMDs, 2) QCD (Qualified Charitable Distribution) - donate up to $105,000 directly from IRA to charity (counts toward RMD, not taxable), 3) Manage other income sources to stay in lower tax brackets, 4) Consider delaying Social Security to create tax planning space, 5) Aggregate multiple IRAs for single withdrawal. Plan with a tax advisor.