Required Minimum Distribution Calculator
Required Minimum Distributions: What Every Retiree Must Know
Required Minimum Distributions (RMDs) are mandatory annual withdrawals from traditional IRAs, 401ks, 403bs, and most other tax-deferred retirement accounts. The IRS requires them because these accounts were funded with pre-tax dollars — eventually, the government needs its share. Missing an RMD triggers a steep penalty.
SECURE 2.0: How the Rules Changed
The SECURE 2.0 Act, signed in December 2022, made two major changes. First, it raised the RMD starting age to 73 (from 72) for anyone turning 72 after December 31, 2022. Second, it reduced the penalty for missing an RMD from 50% to 25% of the shortfall (10% if corrected quickly). The starting age rises again to 75 in 2033. Roth IRAs remain exempt from RMDs during the original owner's lifetime.
How the IRS Calculates Your RMD
Divide your December 31 prior-year account balance by the distribution period from the IRS Uniform Lifetime Table. At 73, the factor is 26.5; at 80, it's 20.2; at 90, it's 12.2. If your sole beneficiary is a spouse more than 10 years younger, you use the more favorable Joint Life and Last Survivor Table, which has lower factors and thus smaller RMDs. See the retirement income calculator to fold your RMD into your overall monthly income plan, and the Roth IRA calculator to model how converting assets before 73 reduces your future RMD burden.
Strategies to Manage Your RMDs
If you don't need the RMD income, consider these approaches: donate up to $105,000/year directly from your IRA to charity via a Qualified Charitable Distribution (QCD), satisfying the RMD while excluding it from taxable income; do Roth conversions before RMD age to reduce future RMD amounts; or reinvest the RMD in a taxable brokerage account. The full retirement calculator can help you understand how RMDs interact with Social Security taxation and your overall retirement income picture.
RMD FAQs
How do I calculate my Required Minimum Distribution?
Divide your December 31 prior-year account balance by the IRS Uniform Lifetime Table life expectancy factor for your age. At 73, the factor is 26.5, so a $500,000 balance requires an $18,868 RMD. At 80, the factor is 20.2, requiring a $24,752 RMD on the same balance. The factor decreases each year, meaning your percentage RMD rises as you age. Our calculator uses the 2024 IRS tables automatically.
What is the RMD starting age in 2024?
The SECURE 2.0 Act raised the RMD starting age to 73 for people who turn 72 after December 31, 2022. It will rise again to 75 in 2033. If you turned 72 before January 1, 2023, your starting age remains 72. Roth IRAs are not subject to RMDs during the original owner's lifetime — a key reason planners recommend Roth conversions before reaching RMD age. Use the Roth IRA calculator to model conversion scenarios.
What happens if I miss my RMD deadline?
The penalty is 25% of the amount you should have withdrawn (reduced from 50% by SECURE 2.0). If corrected within the correction window, it drops to 10%. For example, missing a $20,000 RMD incurs a $5,000 penalty if not corrected promptly, or $2,000 if corrected quickly. The IRS deadline for most account holders is December 31 each year, except for the first RMD which can be delayed to April 1 of the year following the year you turn 73.
Do I have to take RMDs from a Roth IRA?
No. Original Roth IRA owners are not subject to RMDs during their lifetime. Roth 401k owners previously had RMD requirements, but SECURE 2.0 eliminated Roth 401k RMDs starting in 2024. This makes both Roth accounts excellent wealth-preservation vehicles in later retirement, allowing tax-free assets to continue compounding while traditional accounts are drawn down through RMDs. See the retirement income calculator to model tax-efficient withdrawal sequencing.