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RMD Calculator
RMD Calculator
Required Minimum Distribution
$30,364.37
RMD Analysis
At age 73, your $750,000 balance divided by the IRS distribution factor of 24.7 gives an RMD of $30,364.37 for 2026. This distribution is taxed as ordinary income, so plan for it in your tax bill.
*Estimated using IRS Pub 590-B Uniform Lifetime Table factors and SECURE 2.0 RMD ages. Roth IRAs do not require RMDs for the original owner. Missing the deadline triggers a 25% excise tax on the shortfall. Consult a tax professional before acting.
What Are Required Minimum Distributions?
Required Minimum Distributions (RMDs) are the smallest amounts the IRS forces you to withdraw each year from tax-deferred retirement accounts — traditional 401(k)s, 403(b)s, SEP and SIMPLE IRAs, and traditional IRAs — once you reach a certain age. The logic is simple: the government gave you decades of tax-deferred growth, and RMDs ensure that money eventually becomes taxable income. Skip them and the penalty is severe: a 25% excise tax on the amount you failed to withdraw. For American savers, RMD timing changed substantially under the SECURE 2.0 Act. If you were born between 1951 and 1959, RMDs begin at age 73; if you were born in 1960 or later, they begin at 75 (those born before 1951 still follow the age-72 rule). The required amount depends on your prior December 31 account balance divided by an IRS life-expectancy factor. Because RMDs are taxed as ordinary income, they can push retirees into higher brackets, increase Medicare premiums, and make the Social Security benefits taxable — which is why modeling them in advance is essential.
The RMD Formula Explained
The RMD formula is simple division: Annual RMD = Prior December 31 Account Balance ÷ Distribution Period Factor. Most account owners use the IRS Uniform Lifetime Table (Pub 590-B, Table III), where the factor shrinks from 27.4 at age 70 to 4.6 at age 100+, which makes each year's RMD a rising share of the balance. An owner whose spouse is sole beneficiary and more than 10 years younger may instead use the longer Joint Life and Last Survivor Expectancy Table, producing smaller RMDs. This calculator embeds the published Uniform Lifetime factors and applies the joint-life adjustment when the younger-spouse condition is met. It also checks the SECURE 2.0 starting age against your age and birth year. When RMDs are required across multiple accounts, each IRA RMD must be computed separately but can be taken in total from any combination of IRAs, whereas 401(k) RMDs must be taken from each plan separately. Always verify exact figures with your plan administrator before December 31.
Expert Insights
Model RMDs Before You Retire, Not After
RMDs are ordinary income, so they stack on top of pensions, Social Security, and part-time work. Retirees who first see their RMD on a year-end 1099 often get shoved into a higher bracket. Run the projection at 68, plan Roth conversions in the low-income gap years, and shrink the future mandatory withdrawals before they are mandatory.
The 25% Penalty Is Worse Than the Tax
SECURE 2.0 reduced the excise penalty for missed RMDs from 50% to 25% (10% if corrected in two years), but that is still five times the top income rate. Set automatic withholding or a standing withdrawal instruction in December, the month your custodian must report the balance that triggers the calculation.
Qualified Charitable Distributions Beat Cash Withdrawals
Once RMD age arrives, IRA owners can direct up to an inflation-indexed annual cap straight to charity as a Qualified Charitable Distribution, which counts toward the RMD but never hits taxable income, unlike a cash withdrawal followed by a charitable deduction, which often requires itemizing to get any benefit.
Actionable Tips
- 1
Mark the December 31 Balance
The RMD is computed on the prior year's year-end balance, so log every December 31 balance in a spreadsheet. If markets rise sharply late in the year, next year's RMD jumps accordingly and you should set the extra tax aside in advance.
- 2
Coordinate With Your Tax Withholding
Ask your IRA custodian to withhold federal tax from each RMD rather than making quarterly estimated payments. Withholding is treated as paid evenly throughout the year, which can let you make a large January distribution without an underpayment penalty.
- 3
Consider Roth Conversions in Your 60s
The years between retirement and RMD age are often the last window when taxable income is voluntarily low. Converting slices of the traditional IRA to Roth during that gap shrinks the balance that will eventually generate RMDs and creates tax-free growth for heirs.
Real-World Examples
Walter's First RMD Pushed Him Into Medicare Surtaxes
Walter, 73, had $1.1 million in a 401(k) and assumed a modest distribution. His Uniform Lifetime factor of 24.7 produced a $44,534 RMD that, combined with Social Security, lifted his income past the IRMAA thresholds and raised his Medicare Part B and D premiums by nearly $200 a month. A Roth conversion two years earlier would have avoided it.
Gloria Used the Younger Spouse Rule
Gloria, 76, had an $800,000 IRA and a husband 18 years younger who was her sole beneficiary. The joint-life table stretched her distribution period to about 24.7, cutting her RMD to roughly $32,400 versus $36,400 under the uniform table. The difference of about $4,000 a year stays invested and compounding for the next generation.
Frank Paid $6,250 for a Missed Deadline
Frank turned 73 in June and assumed his first withdrawal could wait until the April filing deadline, but the one-year grace applies only once. He withdrew nothing that year, and the IRS assessed the 25% excise penalty on his $25,000 missed RMD. The lesson: take the first RMD by December 31 of the year you reach RMD age, or accept the tax hit of doubling up the next year.
Glossary of Terms
- Distribution Period
- The IRS life-expectancy factor from the Uniform Lifetime Table used to divide your account balance into a required minimum withdrawal amount, shrinking each year as you age.
- SECURE 2.0 Act
- The 2022 law that raised the RMD starting age to 73 for most current retirees and to 75 for those born in 1960 or later, while reducing the missed-RMD penalty to 25%.
- Qualified Charitable Distribution
- A direct transfer from an IRA to a qualified charity that counts toward the RMD but is excluded from taxable income, available once the owner reaches age 70 and a half.
Frequently Asked Questions
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Ivy Sinclair-Wren
Financial Chaos Analyst
Ivy Sinclair-Wren is a Financial Chaos Analyst covering investing, AI, wealth psychology, and the emotional consequences of opening finance apps during market crashes. Based in Melbourne, she specializes in demystifying the US tax code and helping users navigate the intersection of spreadsheet logic and human irrationality.