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RMD Calculator

Determine the mandatory withdrawals from your retirement accounts.

RMD Calculator

Calculate your Required Minimum Distribution for IRAs and 401(k)s.

Balance as of December 31st of the previous year.

Ready to calculate

Understanding the Required Minimum Distributions (RMD) Explained

A Required Minimum Distribution (RMD) is the smallest amount you must withdraw from your tax-deferred retirement accounts—such as a Traditional IRA, SEP IRA, or 401(k)—each year. The federal government requires these withdrawals to ensure they eventually collect taxes on the money that has been growing tax-free for decades.

Guide

How to use the Required Minimum Distributions (RMD) Explained

  • 1Enter the 'Account Balance' of your retirement fund as it stood on December 31st of last year.
  • 2Input your current 'Age'. Note that RMDs generally begin at age 72 or 73 depending on when you were born.
  • 3Click 'Calculate RMD' to see the minimum amount you must withdraw this year.
  • 4Plan your withdrawal strategy to meet the IRS deadline (usually December 31st of each year).
  • 5Consult with a tax professional if you have multiple accounts to determine the best withdrawal sequence.
Applications

Common Use Cases

Retirement Income Planning: Knowing exactly how much cash flow your retirement accounts MUST provide each year.
Tax Liability Projection: Estimating your taxable income to prevent being pushed into a higher tax bracket.
Penalty Avoidance: Ensuring you meet the strict IRS deadlines to avoid the 25% 'insufficient withdrawal' penalty.
Investment Strategy: Deciding which assets to sell within your IRA to satisfy the cash requirement.

The Maths Behind the Calculation

RMD = (Account Balance) / (IRS Distribution Period)

The IRS provides 'Life Expectancy Tables' (most commonly the Uniform Lifetime Table) which assign a 'factor' based on your age. Dividing your balance by this factor determines your required distribution.

Knowledge Base

Frequently Asked Questions

When must I start taking RMDs?

Currently, most people must start RMDs at age 73. If you reached age 72 before 2023, you may have already started under previous rules. Always check the latest SECURE Act updates.

What happens if I miss the deadline?

The penalty is severe—up to 25% of the amount you failed to withdraw. However, if you correct the mistake quickly (within two years), the penalty may be reduced to 10%.

Do Roth IRAs have RMDs?

Original owners of Roth IRAs are *not* required to take RMDs during their lifetime. However, inherited Roth IRAs may be subject to different distribution rules.

Can I withdraw more than the RMD?

Yes, you can always withdraw more than the minimum. However, anything above the RMD does not 'count' toward next year's requirement.

Regional Notice: United States

"Federal tax estimates are based on 2024 brackets. Consult a tax professional for official filing."