RMD Calculator
Calculate your Required Minimum Distribution for retirement accounts
RMD Calculator
Once a person reaches the age of 73, the IRS requires retirement account holders to withdraw a minimum amount of money each year. This calculator determines your RMD based on your age and account balance.
Results
Enter your details and click “Calculate” to see your RMD results.
RMDs: Required Minimum Distributions
A required minimum distribution (RMD) is the minimum amount the IRS mandates you to withdraw from certain tax-deferred retirement accounts. The specific amount varies based on your account balance and life expectancy as determined by the IRS. As you withdraw your RMD, you will also pay taxes. (Note that RMDs are just that: required minimum distributions. So, if you need to pull more money from your accounts after reaching retirement age, you can.)
Important Dates for Taking RMDs
You’re required to take your first RMD by April 1st in the calendar year after you turn 73. This age was increased from 72 due to the passage of the SECURE Act 2.0 in December 2022. It is scheduled to increase again to 75 in 2033. Prior to 2019, the RMD age was 70.5. It was then increased to 72 due to the passage of the SECURE Act in 2019.
How RMDs are Calculated
Calculating your RMD follows these steps based on IRS guidelines:
- Determine the individual retirement account balance as of December 31 of the prior year
- Find the distribution period (or “life expectancy”) that corresponds to your age on the appropriate IRS table
- Divide #1 by #2 to determine your RMD amount
What Retirement Accounts do RMDs Apply to?
Most tax-advantaged and defined contribution retirement accounts impose RMD requirements. These include:
- Traditional IRAs
- SEP IRAs
- SIMPLE IRAs
- Rollover IRAs
- Traditional 401(k) plans
- Most 403(b) and 457(b) plans
What Happens If You Don’t Take RMDs?
As the “R” in RMD stands for “required,” it’s no surprise that there are penalties for failing to take your distributions. To encourage retirees to take their distributions, the IRS charges a 25% excise tax on the undistributed amount. If the mistake is corrected during a two-year “correction window”, the penalty can be further reduced to 10%.