RMD Calculator
Table of Contents
What is an RMD?
A Required Minimum Distribution (RMD) is the minimum amount that the Internal Revenue Service (IRS) requires retirement account owners to withdraw annually from their retirement accounts starting at age 73 (as of 2023, increased from age 72 under the SECURE 2.0 Act). RMDs apply to traditional IRAs, SIMPLE IRAs, SEP IRAs, 401(k)s, 403(b)s, and other defined contribution retirement plans. The primary purpose of RMDs is to ensure that taxes are eventually paid on retirement savings that received preferential tax treatment during the accumulation years.
Important: The SECURE 2.0 Act raised the RMD age to 73 starting January 1, 2023. Beginning January 1, 2033, it will increase to age 75. These are significant changes from the previous age 72 requirement. Roth IRAs do not require RMDs during the account owner's lifetime.
Key RMD Characteristics
Why RMDs Exist
The U.S. government created RMDs to ensure that retirement savings receive eventual taxation. Traditional retirement accounts offer tax deductions or tax-deferred growth to encourage savings, but the government needs to eventually collect taxes on this wealth. RMDs serve as a mechanism to force the withdrawal and taxation of retirement funds, preventing indefinite tax avoidance through account pass-downs.
Strategic RMD Planning
While RMDs are mandatory, strategic planning can optimize your tax situation. Many retirees use Qualified Charitable Distributions (QCDs) to satisfy RMD requirements while supporting charitable causes. Others plan for tax brackets or state income taxes when timing withdrawals. This calculator helps you understand your RMD obligations and plan year-by-year projections.
RMD Rules and Requirements
RMD Age Requirements
Current Rule (2023-2032): RMDs begin at age 73. The first RMD must be taken by April 1 of the year following the year you turn 73 (the Required Beginning Date or RBD). For example, if you turn 73 in 2025, your first RMD is due by April 1, 2026, covering the 2025 distribution year.
Future Rule (2033+): The SECURE 2.0 Act increases the RMD age to 75, beginning January 1, 2033. This provides additional tax deferral opportunity for younger retirees.
Which Accounts Require RMDs
Distribution Period Tables
The IRS provides three life expectancy tables for RMD calculations:
- Uniform Lifetime Table: Used by most account owners. Assumes spouse is exactly 10 years younger. Provides the standard distribution periods.
- Joint and Last Survivor Table: Used when spouse is sole primary beneficiary AND more than 10 years younger. Provides longer distribution periods, resulting in smaller RMDs.
- Single Life Expectancy Table: Used by beneficiaries taking RMDs from inherited retirement accounts after the account owner's death.
RMD Calculation Timing
Your RMD for any year is calculated using your age on December 31 of that year and your account balance as of December 31 of the prior year. This means your 2025 RMD is calculated using your age 31, 2024 and your retirement account balance on December 31, 2024. Contributions made during the year don't affect the RMD calculation until the following year.
Penalties for Non-Compliance
The IRS penalty for not taking your full RMD is now 25% of the shortfall amount (reduced from the previous 50% penalty under SECURE 2.0). If you correct the shortfall within two years, the penalty reduces to 10%. For example, if your RMD is $10,000 and you only withdraw $6,000, the shortfall is $4,000, and you owe a potential $1,000 penalty (25% of $4,000).
Formulas and Calculations
Basic RMD Calculation Formula
The foundational RMD calculation uses your prior-year account balance and your life expectancy factor:
Where:
- Account Balance = Total balance as of December 31 of the prior year
- Distribution Period = Life expectancy factor from applicable IRS table based on your age
Age Calculation for Distribution Period
Your age for RMD purposes is your age on December 31 of the distribution year:
Important:
- Your age on December 31, 2025 determines your 2025 RMD using 2024 year-end balance
- Life expectancy factor comes from IRS Publication 590-B based on your RMD age
Future Account Balance Projection
Project your account balance into future years accounting for RMD withdrawals and investment returns:
Where:
- Current Balance = Account balance at year start
- RMD Withdrawn = Required minimum distribution taken during the year
- Return Rate = Expected annual investment return (as decimal)
Multiple Account Aggregation (IRAs Only)
For IRA RMD calculations, you can aggregate the balances:
Note: This aggregation applies only to IRAs (Traditional, SIMPLE, SEP). Employer plans (401(k)s, 403(b)s) require separate RMD calculations for each plan.
Joint and Last Survivor Table Application
When using the Joint and Last Survivor Table (spouse 10+ years younger):
This typically results in longer distribution periods (smaller RMDs) compared to the Uniform Lifetime Table because life expectancy is calculated based on both spouses.
Uses and Benefits of RMD Calculator
Retirement Income Planning
Understanding your RMD obligations helps ensure you don't face unexpected tax bills or IRS penalties. By calculating RMD amounts in advance, you can plan your withdrawal strategy to minimize taxes, coordinate with Social Security and pension income, and ensure adequate cash flow to meet both required and desired withdrawals.
Tax Optimization Strategies
Multi-Year Projection and Planning
The calculator projects RMD amounts for many decades, showing how account balances decline and RMD amounts change as you age. This long-term view helps identify potential shortfalls or surpluses and allows for proactive adjustments to savings, spending, and withdrawal strategies.
Spousal Beneficiary Planning
If your spouse is significantly younger and is your sole primary beneficiary, you may qualify for Joint and Last Survivor Table treatment, reducing your RMD amounts. This calculator accounts for this benefit if applicable, demonstrating substantial tax savings over decades of retirement.
Inherited Account Planning
Beneficiaries who inherit retirement accounts face their own RMD rules. By understanding the original account owner's RMD strategy, beneficiaries can better plan their inherited account distributions and avoid unexpected tax burdens.
Compliance and Penalty Avoidance
Accurate RMD calculation through this calculator helps you meet IRS requirements, avoid the 25% excise tax penalty, and ensure timely withdrawals. The year-by-year schedule provides a reference for tracking compliance across multiple years.
How to Use This Calculator
Enter Your Year of Birth
Input your birth year to allow the calculator to determine your age for any given RMD year. This is essential for finding the correct life expectancy factor from IRS tables.
Select Year of RMD
Choose the specific year for which you want to calculate your RMD. For example, if you want to know your 2025 RMD, select 2025. The calculator will determine if you qualify (age 73+) and calculate accordingly.
Enter Account Balance
Input your retirement account balance as of December 31 of the prior year. This is the balance used to calculate your current year's RMD. For 2025 RMD, use your December 31, 2024 balance.
Specify Primary Beneficiary
Select whether your spouse is the primary beneficiary. If yes, the calculator may use different life expectancy tables (Joint and Last Survivor) if applicable, potentially reducing your RMD.
Enter Spouse's Birth Year (if applicable)
If your spouse is the primary beneficiary, provide their birth year. If your spouse is more than 10 years younger, the calculator may apply the Joint and Last Survivor Table for potentially lower RMDs.
Set Expected Return Rate
Enter your expected annual investment return rate as a percentage. This projects how your account balance will grow (or decline) in future years, affecting future RMD calculations. Use 5-7% for balanced portfolios.
Click Calculate
Generate your RMD amount for the selected year and a comprehensive year-by-year projection showing annual RMD amounts, distribution periods, and projected account balances through advanced ages.
RMD Calculator
Your RMD Calculation
Calculation Details:
RMD = $200,000 ÷ 0.0 = $0.00
Annual Schedule & Projections
Year-by-year RMD amounts and projected account balances based on your expected return rate:
| Year | Your Age | Distribution Period | RMD Amount | End of Year Balance |
|---|
How This Calculator Works
Step 1: Input Validation and Age Calculation
The calculator validates all inputs and calculates your age for the RMD year. For example, if you were born in 1950 and selected 2025 as your RMD year, the calculator determines your age will be 75 on December 31, 2025 (2025 - 1950 = 75).
Step 2: RMD Eligibility Check
The calculator verifies you've reached age 73 (as of 2023) to qualify for RMD requirements. If you're under 73, it displays "RMD Not Required" and notes that RMDs begin at age 73. This helps users plan ahead for upcoming RMD requirements.
Step 3: Beneficiary and Distribution Period Determination
Based on your beneficiary status and age information, the calculator selects the appropriate IRS life expectancy table:
- Uniform Lifetime Table: Standard table used for most account owners
- Joint and Last Survivor Table: Applied if spouse is primary beneficiary and more than 10 years younger
Step 4: Distribution Period Factor Lookup
The calculator looks up your distribution period factor based on your age and applicable table. This factor represents the IRS life expectancy assumption for your age. For example, at age 75 under the Uniform Lifetime Table, the distribution period is 24.6.
Step 5: Current Year RMD Calculation
The calculator divides your account balance by the distribution period factor: RMD = Account Balance ÷ Distribution Period This produces your exact RMD obligation for the selected year.
Step 6: Year-by-Year Projection Generation
Starting from your selected RMD year, the calculator projects future years by:
- Incrementing your age each year
- Looking up new distribution period for each age
- Calculating RMD using new balance and period
- Projecting account balance: (Prior Balance - RMD) × (1 + Return Rate)
- Repeating until account depletes or advanced ages reached
Step 7: Presentation of Results
Results display your current-year RMD calculation with full formula transparency, plus a comprehensive schedule showing distribution periods that decrease with age, RMD amounts that change annually, and projected account balances declining as withdrawals exceed investment returns in later years.
Key Calculation Assumptions
- All calculations based on IRS Publication 590-B tables for 2024/2025
- RMD age of 73 (effective 2023); will increase to 75 in 2033
- Account balance taken as of December 31 of prior calendar year
- Investment return rate remains constant throughout projection period
- RMD is withdrawn at year-end; full-year return applies
- No additional contributions are added to the account
- Single life RMD calculations only (not heir calculations)
Frequently Asked Questions
A Required Minimum Distribution (RMD) is the minimum amount the IRS requires you to withdraw annually from your retirement accounts starting at age 73 (as of 2023). RMDs apply to traditional IRAs, SIMPLE IRAs, SEP IRAs, 401(k)s, and similar defined contribution plans. The IRS implements RMDs to ensure that taxes are eventually paid on retirement savings that received tax advantages during accumulation years. Roth IRAs do not require RMDs during the account owner's lifetime.
RMDs begin at age 73 for most retirement accounts under current law (effective January 1, 2023). This age was increased from 72 under the SECURE 2.0 Act. Beginning January 1, 2033, the RMD age will increase again to 75. Your first RMD must be taken by April 1 of the year following the year you turn 73 (called the Required Beginning Date). All subsequent RMDs must be taken by December 31 each calendar year.
Your RMD is calculated by dividing your retirement account balance as of December 31 of the prior year by your life expectancy factor from an IRS distribution period table. The formula is simple: RMD = Account Balance ÷ Distribution Period. Your applicable distribution period depends on your age and beneficiary status. For most people, the Uniform Lifetime Table applies. If your spouse is your sole primary beneficiary and is more than 10 years younger, the Joint and Last Survivor Table may apply, resulting in a larger distribution period and smaller RMD.
No, Roth IRAs do not require RMDs during the account owner's lifetime. This is one of the major advantages of Roth IRAs over traditional IRAs. You can let your Roth IRA grow tax-free indefinitely without taking distributions. This makes Roth IRAs ideal for wealth accumulation, legacy planning, and those who don't need the retirement income. Traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k)s, and 403(b)s all require RMDs starting at age 73.
The IRS imposes a 25% excise tax on the amount of your RMD that you fail to withdraw. For example, if your RMD is $10,000 and you only withdraw $6,000, the $4,000 shortfall is subject to a $1,000 penalty (25% of $4,000). This is in addition to ordinary income tax on the shortfall amount. If you correct the shortfall within two years, the penalty reduces to 10%. This was significantly reduced from the previous 50% penalty, making it more important than ever to track and meet your RMD deadlines.
Yes, if you're age 73 or older, you can make a Qualified Charitable Distribution (QCD) directly from your IRA to an eligible charity. QCDs can satisfy part or all of your RMD requirement and are excluded from your taxable income. You can distribute up to $100,000 annually through QCDs. This strategy is particularly valuable for high-income retirees who want to support charitable causes while reducing their RMD-driven taxable income and potentially avoiding Medicare premium increases.
The distribution period (life expectancy factor) is a number from IRS tables that represents how many years the IRS estimates you'll live based on your age. Longer distribution periods result in smaller annual RMDs. For example, at age 75, the Uniform Lifetime Table shows a distribution period of 24.6, meaning the IRS estimates you'll live about 24.6 more years. This period decreases each year as you age, resulting in larger RMDs in later life when there's less time for account growth to offset withdrawals.
Yes, you can aggregate balances from all your traditional IRAs, SIMPLE IRAs, and SEP IRAs for RMD calculation purposes. You calculate one combined RMD and can take it from any of the aggregated accounts. However, employer retirement plans (401(k)s, 403(b)s) must have their RMDs calculated separately for each plan. Roth IRAs are never aggregated with other accounts for RMD purposes and have no RMD requirement during the owner's lifetime.
Most account owners use the Uniform Lifetime Table, which assumes your spouse is exactly 10 years younger and is your primary beneficiary. If your spouse is your sole primary beneficiary AND is more than 10 years younger, you use the Joint and Last Survivor Table. This table has longer distribution periods, resulting in smaller RMDs. If you have no spouse or someone other than your spouse is primary beneficiary, use the Uniform Lifetime Table. Beneficiaries of inherited accounts use the Single Life Expectancy Table to calculate their post-death RMDs.
Withdrawing more than your RMD in any year does not reduce future RMDs—each year's RMD is independently recalculated based on that year's age and account balance. However, taking larger withdrawals does reduce your account balance for future RMD calculations. This means if your investment returns are modest, large withdrawals may eventually reduce future RMD amounts. Additionally, excess withdrawals increase your current-year taxable income, so consider the tax impact carefully when taking distributions beyond the RMD requirement.