Finance & Business
RMD Calculator
Calculate your Required Minimum Distribution (RMD) from retirement accounts.
Enter your age and account balance to calculate your Required Minimum Distribution.
Related to RMD Calculator
The Required Minimum Distribution (RMD) calculator determines the minimum amount you must withdraw annually from your retirement accounts once you reach a certain age. The calculation uses the IRS Uniform Lifetime Table, which provides distribution factors based on your age. The basic formula is:
RMD Calculation Formula
RMD = Account Balance ÷ Distribution Factor
The calculator also projects your future RMDs for the next five years, assuming a 5% annual investment return after distributions. This helps you plan for future withdrawals and understand how your RMDs might change over time.
Key Features
• Uses current IRS Uniform Lifetime Table (2022 and later)
• Calculates immediate RMD requirement
• Projects future RMDs over 5 years
• Accounts for potential investment growth
• Provides visual representation of future distributions
The calculator provides several key pieces of information to help you understand your RMD obligations and plan for future distributions:
Distribution Factor
This is the number from the IRS Uniform Lifetime Table based on your age. A higher factor means a lower required distribution relative to your account balance.
Required Distribution
This is the minimum amount you must withdraw from your retirement account this year. Failing to take this distribution may result in significant tax penalties.
5-Year Projection
The graph shows estimated future RMDs based on a 5% annual investment return. This helps you plan for future withdrawals, though actual amounts may vary based on investment performance.
1. When do I need to start taking RMDs?
As of 2023, you must start taking RMDs from most retirement accounts when you reach age 73. This age will increase to 75 in 2033. The first RMD must be taken by April 1st of the year following the year you reach the required age.
2. Which retirement accounts require RMDs?
RMDs are required from traditional IRAs, SEP IRAs, SIMPLE IRAs, and most employer-sponsored retirement plans like 401(k)s, 403(b)s, and 457(b) plans. Roth IRAs do not require RMDs during the owner's lifetime.
3. What happens if I don't take my RMD?
If you fail to take your RMD or withdraw less than the required amount, the shortfall may be subject to a 25% excise tax (reduced to 10% if corrected in a timely manner), making it crucial to calculate and withdraw the correct amount.
4. Can I withdraw more than the RMD?
Yes, you can always withdraw more than your RMD. However, taking larger distributions may impact your retirement savings longevity and could affect your tax situation. Consider consulting with a financial advisor for personalized advice.
5. What is the scientific source for this calculator?
This calculator uses the official IRS Uniform Lifetime Table as published in IRS Publication 590-B, "Distributions from Individual Retirement Arrangements (IRAs)." The distribution factors and calculation methodology are based on life expectancy tables developed by the IRS and mandated by federal tax regulations. The 5-year projection uses a conservative 5% annual growth assumption based on historical market performance studies, though actual returns may vary. The calculator adheres to the SECURE Act and SECURE 2.0 Act requirements for RMD calculations and starting ages.