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RMD Calculator

Calculate your Required Minimum Distribution (RMD) to ensure you stay compliant with IRS regulations and avoid steep penalties.

Enter Your RMD Details

Enter your total balance from all tax-deferred accounts as of Dec 31 of last year.

Your RMD calculation will appear here.

Understanding Required Minimum Distributions (RMDs)

The U.S. government provides significant tax advantages for retirement savings accounts like 401(k)s and Traditional IRAs, allowing your money to grow tax-deferred for decades. However, this tax benefit is not indefinite. The Internal Revenue Service (IRS) requires you to start withdrawing a certain amount from these accounts annually once you reach a specific age. This mandatory withdrawal is called a Required Minimum Distribution, or RMD. The purpose is to ensure that the government eventually collects tax revenue on these funds. Our RMD calculator simplifies the process of figuring out this amount, helping you stay compliant and manage your retirement income effectively.

Which Accounts are Subject to RMDs?

RMD rules generally apply to tax-deferred retirement accounts. This includes:

  • Traditional IRAs
  • SEP IRAs
  • SIMPLE IRAs
  • 401(k) plans (including Roth 401(k)s)
  • 403(b) plans
  • 457(b) plans
  • Profit-sharing plans

A notable exception is the Roth IRA. Original owners of a Roth IRA are not required to take RMDs during their lifetime. However, beneficiaries who inherit a Roth IRA are typically subject to RMD rules. The age to begin taking RMDs has changed due to the SECURE 2.0 Act of 2022. For those born between 1951 and 1959, the starting age is 73. For those born in 1960 or later, it is 75.

How Your RMD is Calculated

The formula for calculating your RMD is straightforward. You take the total value of all your applicable retirement accounts from the end of the previous year (December 31st) and divide it by a "distribution period" factor provided by the IRS. This factor is based on your age and life expectancy and can be found in the IRS's Uniform Lifetime Table. Our calculator automates this process by using the current, official table.

RMD = (Previous Year-End Account Balance) / (IRS Distribution Period Factor)

For example, if you had $500,000 in your IRA at the end of last year and your distribution factor for your age is 26.5, your RMD for this year would be $18,867.92.

The High Cost of Missing an RMD

Failing to take your full RMD by the deadline is one of the most costly mistakes a retiree can make. The IRS imposes a significant penalty on any amount that was not withdrawn as required. Under the SECURE 2.0 Act, this penalty is 25% of the shortfall. However, if you correct the mistake in a timely manner, the penalty can be reduced to 10%. This makes it absolutely critical to accurately calculate and withdraw your RMD each year. Planning for these withdrawals is a key part of any successful retirement strategy. You can see how these withdrawals might affect your overall plan by using our comprehensive Retirement Calculator. For detailed rules and the official tables, always refer to the IRS RMD FAQ page.