RMD (Required Minimum Distribution) Calculator

This calculator helps you determine your Required Minimum Distribution (RMD) from retirement accounts like a Traditional IRA or 401(k). Enter your account balance from December 31st of last year and your age at the end of this year.

Understanding Your Required Minimum Distribution (RMD)

Navigating retirement account rules can be complex, but understanding your Required Minimum Distribution (RMD) is crucial for sound financial planning and avoiding potential IRS penalties. Our RMD Calculator is designed to simplify this process for you.

What is an RMD?

A Required Minimum Distribution (RMD) is the minimum amount you must withdraw annually from most tax-deferred retirement accounts once you reach a certain age. The U.S. government mandates these withdrawals to ensure that taxes are eventually paid on these sheltered savings. For individuals turning 72 after December 31, 2022, the RMD age is 73, thanks to the SECURE 2.0 Act. This age will further increase to 75 starting in 2033.

Which Accounts Require RMDs?

RMD rules generally apply to the following types of retirement accounts:

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

Roth IRAs are a notable exception; they do not require withdrawals during the original owner's lifetime. However, beneficiaries of Roth IRAs may be subject to RMDs.

How is the RMD Calculated?

The RMD is calculated by dividing your retirement account balance (as of December 31st of the previous year) by a life expectancy factor. This factor is determined by the IRS and can be found in specific tables within IRS Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs).

• Uniform Lifetime Table: This is the most commonly used table for calculating RMDs for account owners.
• Joint Life and Last Survivor Expectancy Table: This table is used if your sole primary beneficiary is your spouse and they are more than 10 years younger than you. Using this table can result in a smaller RMD.

Our calculator helps you determine the correct factor and estimate your RMD based on your age, account balance, and spousal beneficiary status.

When Do I Need to Take My RMD?

You generally must take your first RMD by April 1st of the year following the year you turn 73. For all subsequent years, the RMD must be taken by December 31st. If you delay your first RMD until April 1st, you will have to take two RMDs in that year – one for the year you turned 73 and another for the current year.

Why Use Our RMD Calculator?

Our RMD Calculator offers several benefits:

• Accuracy: Uses up-to-date IRS life expectancy tables (Uniform Lifetime Table and guidance for Joint Life scenarios).
• Ease of Use: Simply input your prior year-end account balance, your birth date, and relevant spousal information.
• Informed Planning: Helps you understand your potential RMD amount, allowing for better tax and cash flow planning in retirement.
• Avoid Penalties: Failing to take the correct RMD amount on time can result in a significant tax penalty (currently 25% of the amount not withdrawn, potentially reduced to 10% if corrected promptly).

Staying on top of your RMDs is a key part of managing your retirement income. Use our calculator today to estimate your RMD and ensure you meet your obligations while planning for a comfortable retirement.