Required Minimum Distribution (RMD) Calculator
Calculate the minimum amount you must withdraw from your retirement accounts each year.
Financial Disclaimer: This calculator provides estimates based on current tax regulations. Individual circumstances may vary. Please consult with a qualified financial advisor or tax professional before making financial decisions about your retirement accounts.
RMD Calculation Results
Age in calculation year:
Distribution period:
Required Minimum Distribution:
About Required Minimum Distributions (RMDs)
A Required Minimum Distribution (RMD) is the minimum amount that must be withdrawn from certain retirement accounts each year, as mandated by IRS regulations. This calculator helps you determine the amount you need to withdraw based on your age and account balance.
Who Needs to Take RMDs?
RMDs generally apply to retirement account owners when they reach a specific age. Following the SECURE 2.0 Act, the age requirements are:
- If you turned 72 before January 1, 2023, you must continue taking RMDs
- If you turn 72 after December 31, 2022, you must begin taking RMDs in the year you turn 73
- If you turn 73 after December 31, 2032, you must begin taking RMDs in the year you turn 75
RMDs apply to traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k) plans, 403(b) plans, 457(b) plans, profit-sharing plans, and other defined contribution plans.
How RMDs are Calculated
The basic formula for calculating your RMD is:
RMD = Account Balance / Distribution Period
Where:
- Account Balance is the value of your retirement account as of December 31 of the previous year
- Distribution Period is based on your age and is determined using IRS Uniform Lifetime Table (or Joint Life Expectancy Table if your spouse is your sole beneficiary and is more than 10 years younger)
Important RMD Rules to Know:
- Your first RMD must be taken by April 1 of the year following the year you reach the required age
- Subsequent RMDs must be taken by December 31 each year
- If you delay your first RMD until April 1, you'll have to take two distributions in that calendar year
- RMDs must be calculated separately for each retirement account, though in some cases you can withdraw the total from one account
- Failure to take the full RMD amount can result in a 25% excise tax on the amount not withdrawn (reduced from 50% under the SECURE 2.0 Act)
Special Considerations:
Roth IRAs: These accounts are not subject to RMDs during the owner's lifetime, though inherited Roth IRAs are subject to RMD rules.
Still Working Exception: If you're still working at the company that sponsors your retirement plan and you don't own more than 5% of the company, you may be able to delay taking RMDs from that plan until you retire.
Multiple Accounts: If you have multiple IRAs, you calculate the RMD separately for each account but can withdraw the total amount from one or more IRAs. Similar rules apply to 403(b) accounts, but not to 401(k) plans or other retirement accounts.
This calculator is designed to help you estimate your RMD based on current IRS tables. Always consult with a financial advisor or tax professional for personalized advice regarding your retirement accounts and tax obligations.
Frequently Asked Questions
What happens if I don't take my RMD?
If you fail to take your RMD by the required deadline, you may face a significant tax penalty. Under the SECURE 2.0 Act, the penalty is 25% of the amount not withdrawn (reduced from the previous 50% rate). However, if you correct the mistake in a timely manner (generally within two years), the penalty may be reduced to 10%. These penalties are in addition to regular income tax on the distribution.
Can I take more than my RMD?
Yes, you can withdraw more than your RMD amount. The RMD is just the minimum amount required by law. Taking more than your RMD doesn't affect your RMD amount for future years. However, all distributions from traditional retirement accounts are generally subject to income tax, so taking larger withdrawals may increase your tax liability.
How do RMDs affect my taxes?
RMDs from traditional retirement accounts are considered taxable income in the year you take the distribution. The withdrawal will be added to your other income and taxed at your ordinary income tax rate. Depending on the amount of the distribution, it could potentially move you into a higher tax bracket or affect other income-related items like Medicare premiums or the taxation of Social Security benefits.
Can I convert my RMD to a Roth IRA?
No, you cannot convert your RMD to a Roth IRA. You must take the RMD and pay taxes on it first. After satisfying your RMD, you can then convert additional funds from your traditional IRA to a Roth IRA if you wish. The conversion amount would also be subject to income tax in the year of the conversion.