Required Minimum
Distribution calculator.

Field guide

What is a Required Minimum Distribution?

A Required Minimum Distribution (RMD) is the minimum amount the IRS requires you to withdraw from certain tax-deferred retirement accounts each year once you reach a specific age. Because contributions to accounts like Traditional IRAs and 401(k)s were made with pre-tax dollars, meaning you deferred income tax on that money; the government eventually demands its cut. RMDs are the mechanism that prevents you from letting pre-tax savings compound indefinitely without ever paying tax on them.

The amount you must withdraw is not arbitrary. It is calculated by dividing your account’s prior year-end balance by a distribution period from the IRS’s Uniform Lifetime Table: a fixed actuarial schedule that shortens each year as you age. The result is a withdrawal that rises, as a percentage of your balance, every year you live.

Which accounts require RMDs?

RMDs apply to virtually all pre-tax retirement accounts:

• Traditional IRAs: the most common source of RMDs for individual retirees.
• SEP IRAs and SIMPLE IRAs: used by self-employed individuals and small business employees.
• Traditional 401(k) plans: including those sponsored by your employer.
• 403(b) plans: common for educators and non-profit employees.
• 457(b) plans: offered by state and local governments.
• Other defined-contribution plans: profit sharing, money purchase pension plans, and similar accounts.

Roth IRAs are exempt from RMDs during the owner’s lifetime, the defining advantage of the Roth structure. As of 2024, Roth 401(k)s are also exempt from lifetime RMDs under SECURE 2.0. If you have both Roth and Traditional accounts, only the Traditional balances are subject to RMDs.

When do RMDs begin? The SECURE 2.0 rules.

The starting age for RMDs has shifted twice in recent years:

• Before the SECURE Act (2019): RMDs began at age 70½.
• SECURE Act 1.0 (2020–2022): RMDs pushed back to age 72 for those who had not yet reached 70½.
• SECURE Act 2.0 (2023–2032): RMDs begin at age 73 for anyone born between 1951 and 1959.
• SECURE Act 2.0 (2033+): RMDs will begin at age 75 for anyone born in 1960 or later.

If you were born in 1960 or later, your first RMD will not be required until you turn 75. This calculator uses 73 as the default start age (the current standard). Simply adjust the age input to 75 if the later rule applies to you.

One important nuance: you may delay your very first RMD until April 1 of the year following the year you turn 73. However, doing so means you will take two RMDs in that second year; one for the prior year by April 1, and one for the current year by December 31. Taking two distributions in the same tax year can push you into a higher bracket, so most planners recommend taking the first RMD in the year you turn 73.

How to calculate your RMD.

The IRS formula is straightforward:

The distribution period comes from the IRS Uniform Lifetime Table (Table III, Publication 590-B), which assigns a number to each age starting at 72. At age 73, the distribution period is 26.5. At age 80, it is 20.2. At age 90, it is 12.2.

Worked example: A 76-year-old with a December 31 IRA balance of $400,000:

That $16,878 must be withdrawn by December 31 of the current year. It is counted as ordinary income and taxed at your marginal rate. There is no withholding requirement, but many account holders elect to have 10–20% withheld to avoid a tax surprise.

Multiple accounts: the aggregation rules

If you own more than one IRA, you must calculate the RMD separately for each account, but you can withdraw the total from any one or any combination of those IRAs. This flexibility lets you choose which accounts to draw down, which matters for tax-loss harvesting and asset allocation.

401(k) plans are different: each employer plan calculates and requires its own separate withdrawal. You cannot aggregate 401(k) balances across plans the way you can with IRAs. If you have a former employer’s 401(k) you no longer need to manage, rolling it into your IRA before RMD age simplifies this considerably.

The Uniform Lifetime Table at a glance

Below are the distribution periods most commonly referenced. The full IRS table runs from age 72 to 120; this calculator applies the complete table automatically.

Notice how the withdrawal rate rises steadily, from 3.77% at 73 to over 15% at 100. This is by design: the IRS table is calibrated to deplete the account to zero by a statistically expected end of life, ensuring the tax is collected.

What happens if you miss an RMD?

Missing or under-taking an RMD triggers an excise tax on the shortfall, the amount you should have withdrawn but did not. Under SECURE 2.0 (effective 2023):

• The excise tax is 25% of the missed amount (reduced from 50% under prior law).
• If you correct the missed RMD within a two-year correction window, the penalty drops to 10%.
• You report and pay the excise tax on IRS Form 5329. The IRS can also waive the penalty for reasonable cause; document your error and file a corrective distribution promptly.

On a $20,000 missed RMD, a 25% penalty is $5,000, on top of the ordinary income tax you owe when you eventually take the distribution. The 10% corrective rate still costs $2,000. Neither is trivial. Set a calendar reminder or ask your custodian to automatically distribute your RMD each December.

Strategies to manage your RMDs.

Qualified Charitable Distributions (QCDs)

If you are 70½ or older, you can transfer up to $105,000 per year (2024 limit, indexed for inflation) directly from your IRA to a qualifying charity. This counts toward your RMD and is excluded from your taxable income, unlike a regular distribution followed by a charitable deduction. For retirees who donate regularly and do not itemize, QCDs are one of the most tax-efficient strategies available.

Roth conversions before RMD age

Moving money from a Traditional IRA to a Roth IRA (a "Roth conversion") reduces your future pre-tax balance and therefore your future RMDs. Conversions are taxed as ordinary income in the year of conversion, so the optimal strategy is to convert in years when your marginal rate is lower: typically in the gap between retirement and age 73 before Social Security benefits and RMDs stack on top of each other. Use the Roth IRA Calculator to model the long-term tradeoff.

Reinvesting distributions wisely

You are not required to spend your RMD. After satisfying the mandatory withdrawal, you can invest those funds in a taxable brokerage account. The compounding continues, just under a different tax treatment (capital gains rather than ordinary income). Many retirees who do not need the cash for living expenses simply reinvest in a diversified ETF portfolio.

Consider the timing

Taking your RMD early in the year (January or February) means the distribution is out of the tax-deferred account sooner, potentially reducing the next year’s RMD if the market performs well. Taking it late (December) keeps more money growing tax-deferred longer. There is no universally correct answer; it depends on your cash-flow needs and market outlook. Most custodians offer automatic monthly distributions to smooth the income.

Caveats and disclaimer

This calculator uses the IRS Uniform Lifetime Table (Table III, Publication 590-B, 2022 revision). It applies to most account owners. If your sole designated beneficiary is a spouse who is more than 10 years younger than you, the IRS Joint Life Expectancy Table (Table II) produces a lower RMD; use that table with your financial advisor.

Return projections are illustrative only. The actual growth of your account depends on market performance, asset allocation, fees, and distributions taken. State income taxes on RMD distributions vary; consult a tax professional for your specific situation. This tool is for planning purposes and does not constitute tax or financial advice.