Required minimum distribution (RMD) calculator

How the formula works

A required minimum distribution is the smallest amount the IRS lets you leave in a traditional retirement account each year once you reach the start age. It is not a percentage you choose — it is your balance divided by a number the IRS publishes for your age:

The distribution period comes from the IRS Uniform Lifetime Table (the 2022 version, in force today). It is a life-expectancy divisor: at 73 it is 26.5, and it shrinks every year — 25.5 at 74, 24.6 at 75, and on down. Because you divide by a smaller number each year, the fraction of the account you must withdraw keeps rising: about 3.8% at 73, past 5% by 80, near 8% by 90. The table assumes a beneficiary ten years younger; the one exception, where your sole beneficiary is a spouse more than ten years younger, uses a separate Joint Life table with larger periods and so smaller RMDs.

The dollar RMD does not rise forever. Early on, a decent return grows the balance faster than the withdrawal drains it, so the RMD climbs; eventually the divisor falls fast enough that the shrinking balance wins and the yearly dollar amount turns down. The worksheet projects that whole path — grow the balance by your expected return, subtract the year's RMD, then divide by the next age's smaller factor — which is the curve in the figure below.

The tax drag. Every dollar of an RMD from a traditional IRA or 401(k) is ordinary income in the year you take it, whether or not you need the cash. A large forced withdrawal can push you into a higher bracket, raise the taxable share of your Social Security, and lift your Medicare premiums through IRMAA. Because RMDs are a fixed fraction of the balance, the bigger the traditional balance you carry into your 70s, the bigger every future RMD and its tax. That is why moving money out of pre-tax accounts before 73 — for example through Roth conversions in lower-income years, weighed on the Roth vs traditional IRA calculator — can shrink the balance the divisor is applied to and reduce lifetime RMDs, since a Roth IRA has no RMD for its owner at all.

What each input means

Your age this year

The age you reach during this distribution year. It selects the divisor from the Uniform Lifetime Table — the single input that sets how large a slice you must take. RMDs begin at 73 under SECURE 2.0 (rising to 75 in 2033).

Balance on Dec 31 last year

The prior year-end fair market value of the account, summed across your traditional IRAs (401(k)s are figured per plan). This is the numerator — the RMD is always based on last December's balance, not today's.

Expected annual return

The growth assumption used only for the forward projection, not for this year's RMD, which is already fixed by last year's balance. It determines whether the balance — and so future RMDs — keeps rising for a while before turning down.

Your marginal tax rate

The rate on your next dollar of ordinary income, used to estimate the tax on the RMD. An RMD stacks on top of your other income, so its true cost is your marginal — not average — rate, and a big one can spill into the next bracket.

A worked example

The worksheet's defaults: age 73, a $500,000 traditional balance as of December 31 last year, a 5% expected return and a 22% marginal tax rate.

• At 73 the Uniform Lifetime Table gives a distribution period of 26.5.
• This year's RMD: $500,000 / 26.5 = $18,868 — about 3.8% of the balance.
• At a 22% marginal rate the tax is $18,868 × 0.22 = $4,151, leaving $14,717 after tax.
• Next year the divisor drops to 25.5, so even if the balance were unchanged the RMD would rise — and at a 5% return the projection has the dollar RMD climbing to about $42,129 near age 95 before the shrinking balance pulls it back down.

Assumptions and limits

• Uses the IRS 2022+ Uniform Lifetime Table, for account owners whose sole beneficiary is not a spouse more than ten years younger. That case uses the separate Joint Life and Last Survivor Table, which gives larger periods and smaller RMDs.
• Traditional IRAs and 401(k)s only. Roth IRAs have no RMD for the original owner, and since 2024 designated Roth 401(k)/403(b) accounts no longer have lifetime RMDs either. Inherited accounts follow different rules.
• The start age is 73 under SECURE 2.0 (for those reaching 72 after 2022); it rises to 75 in 2033. Miss or underpay an RMD and the shortfall is subject to a 25% excise tax — cut to 10% if corrected within the two-year window.
• The return is a constant, smooth line. Real markets swing, so an actual RMD path is bumpier than the curve shown; the projection illustrates the shape, not a forecast.
• The tax figure is a flat marginal-rate estimate. It ignores state income tax, bracket spillover, the effect on Social Security taxation and Medicare IRMAA surcharges, and any qualified charitable distribution.
• This is arithmetic, not tax advice. Confirm your own RMD and its deadline with your custodian or a tax professional.

Questions people ask

What is an RMD and when does it start?

A required minimum distribution is the least you must withdraw each year from a traditional (pre-tax) retirement account once you reach the start age, so the IRS can finally tax money that grew tax-deferred. Under SECURE 2.0 the start age is 73 for anyone who turns 72 after 2022, and it rises to 75 in 2033. Your first RMD can be delayed to April 1 of the year after you turn 73, but doing so stacks two RMDs into one tax year.

How is the RMD amount calculated?

Divide your prior-year-end balance by a distribution period read from the IRS Uniform Lifetime Table for your age. At 73 the period is 26.5, so a $500,000 balance gives $500,000 / 26.5 = $18,868. The period shrinks each year, so the percentage you must withdraw rises even when the balance holds steady.

What is the penalty for missing an RMD?

If you take less than required, the shortfall is hit with a 25% excise tax under SECURE 2.0 (down from the old 50%). If you correct the mistake and file the right form within a two-year window, the penalty drops to 10%. The fix is to withdraw the missed amount promptly and report it — the IRS routinely waives the penalty for reasonable-cause errors.

Do Roth accounts have RMDs?

A Roth IRA has no RMD during the original owner's lifetime — one of its biggest advantages. And as of 2024, designated Roth accounts inside a 401(k) or 403(b) no longer have lifetime RMDs either, matching the Roth IRA rule. Inherited Roth accounts, however, are still subject to distribution rules for the beneficiary.

How can I reduce my RMDs?

Shrink the pre-tax balance the divisor is applied to before RMDs begin. Roth conversions in lower-income years between retirement and 73 move money to an account with no owner RMD — weigh them on the Roth vs traditional IRA calculator. After 73, a qualified charitable distribution (QCD) lets you send up to an annual limit straight from an IRA to charity, counting toward your RMD but excluded from taxable income. Still working past 73 can also defer RMDs from your current employer's 401(k).