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Easy-to-Use Required Minimum Distribution (RMD) Calculator

An RMD, or Required Minimum Distribution, is the minimum amount you must withdraw from your retirement accounts annually once you reach a certain age. According to the SECURE 2.0 Act, as of 2024, this age is 73, and it will further increase to 75 in 2033. These withdrawals are required from most retirement accounts such as IRAs and 401(k)s, except for Roth IRAs, and are calculated based on your life expectancy and account balance at the end of the previous year.

RMD Calculator

Easy-to-Use RMD Calculator

Your date of birth is used to calculate your current age and if married the difference between your spouse and your age. i


Retirement plan account owners generally must withdraw annually starting with the year they reach age 72.
Your account balance from last year 12/31. i


This controls which IRS life expectancy table we use. i


This was calculated using the corresponding values from the IRS documents relating to RMD, which can be found here.

Result

Disclaimer

RMD Calculator Disclaimer

Important Notice

The Required Minimum Distribution (RMD) Calculator provided on this website is designed for educational purposes only. The calculations and results produced by this tool are based on general assumptions and publicly available IRS information, but they may not account for all individual circumstances or variations in tax law. Therefore, it is crucial to understand that the information generated by this calculator should not be interpreted as legal, financial, or tax advice.

Accuracy and Assumptions

While we strive to ensure the accuracy of the calculator, the results are based on the data you provide and the current understanding of IRS guidelines regarding RMDs. Factors such as changes in tax laws, regulations, personal circumstances, and specific account details can significantly impact the accuracy of the results. The calculator uses standard life expectancy tables and distribution periods as outlined in IRS publications, but it may not incorporate every possible scenario or personal nuance.

Consultation with Professionals

We strongly recommend consulting with a qualified tax professional or financial advisor before making any decisions based on the results of this calculator. A tax professional can provide personalized advice that takes into account your unique financial situation, tax considerations, and any recent changes in tax laws. Additionally, they can help you understand the implications of RMDs on your overall retirement strategy and financial planning.

IRS Resources

For the most accurate and up-to-date information on RMDs and other retirement-related tax matters, please refer directly to IRS resources. The IRS website offers comprehensive guides, publications, and tools that can provide detailed information and clarification on various tax-related topics. You can access these resources at www.irs.gov.

No Liability

By using this calculator, you acknowledge and agree that the creators, owners, and operators of this website are not responsible for any inaccuracies, errors, or omissions in the calculations or the information provided. Furthermore, we disclaim any liability for any actions taken based on the results of the calculator. The information provided is "as is" without any warranty of any kind, whether express or implied, including but not limited to warranties of merchantability, fitness for a particular purpose, or non-infringement.

User Responsibility

It is the responsibility of the user to verify the information and results obtained from this calculator with a qualified professional and the IRS. By using this calculator, you agree that you will not hold the creators, owners, or operators of this website liable for any decisions made or actions taken in reliance on the information provided by this tool.

Educational Purpose

This RMD Calculator is intended solely for educational purposes. It is designed to give users a general understanding of how RMDs are calculated based on their input. However, due to the complexity of tax laws and individual financial situations, the results should not be used as the sole basis for any financial or tax-related decisions.

Contact Information

If you have any questions or concerns regarding the use of this calculator, or if you require further assistance, please contact a qualified tax professional or financial advisor. For specific questions about your RMDs or other tax matters, you may also contact the IRS directly through their official website or customer service helpline.

By using this RMD Calculator, you agree to this disclaimer and acknowledge the limitations and responsibilities outlined herein.

Definitions for Calculating Required Minimum Distributions:

RMD Definitions
Term Definition Purpose in RMD Calculations
Required Minimum Distribution (RMD) The minimum amount that must be withdrawn from a retirement account annually, starting at age 73 if you reach that age after December 31, 2022. If you reached age 72 before January 1, 2023, you must start RMDs at age 72. Ensures that retirees withdraw a portion of their tax-deferred retirement savings, which are then subject to income tax.
Retirement Account Types Includes traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k) plans, 403(b) plans, and other defined contribution plans. RMD rules apply to these accounts, requiring withdrawals after a certain age.
Account Balance The fair market value of the retirement account as of December 31 of the previous year. Used to calculate the RMD by determining the amount subject to the RMD formula.
Distribution Period A period based on the account owner's life expectancy, determined using IRS life expectancy tables. Used to divide the account balance to determine the annual RMD amount.
IRS Life Expectancy Tables Tables published by the IRS that provide life expectancy factors for calculating RMDs. These factors are used in the formula to determine the annual RMD amount.
Uniform Lifetime Table A table used by most account owners to determine their RMDs, based on the account owner's age. Provides the life expectancy factor for the account owner to calculate the RMD.
Joint Life and Last Survivor Expectancy Table A table used when the sole beneficiary of the account is the owner's spouse who is more than 10 years younger than the owner. Provides a longer distribution period, resulting in smaller annual RMDs.
Single Life Expectancy Table A table used by beneficiaries of inherited retirement accounts to determine their RMDs. Provides the life expectancy factor for beneficiaries to calculate the annual RMD.
Beneficiary The individual or entity designated to inherit the retirement account. Determines how RMDs are calculated and distributed after the account owner's death.
Inherited IRA An IRA account inherited from the original owner. Subject to specific RMD rules based on the beneficiary's relationship to the original owner.
5-Year Rule An RMD rule that requires the entire inherited retirement account to be distributed by the end of the fifth year following the original owner's death, if the original owner died before the required beginning date and the account is not eligible for the life expectancy method. Provides a distribution option for certain beneficiaries of inherited accounts.
Required Beginning Date (RBD) The date by which the account owner must take their first RMD, which is April 1 of the year following the year they reach the required starting age (72 or 73, depending on the year they reach the age). Marks the deadline for the first RMD, influencing the calculation and timing of subsequent RMDs.

Scenario 1: Married 74 Year old $750,000 IRA Account Value Wife Over Ten Years Younger

Example Details:

  • Your Date of Birth: December 4, 1949
  • Your Age: 74
  • Marital Status: Married
  • Account Balance as of December 31 last year: $750,000

The IRS mandates that individuals of a certain age must begin withdrawing a minimum amount from their retirement accounts each year. This is known as the Required Minimum Distribution, or RMD.

How We Calculate Your RMD:

  1. Find Your Age Factor: According to the IRS Uniform Lifetime Table, the factor for someone who is 74 years old and married with a younger spouse is 25.3.
  2. Use Your Account Balance: Your account balance as of December 31st last year is $750,000.

Here’s the simple formula to calculate your RMD:

RMD = Account Balance / Age Factor

Now, let’s plug in your numbers:

RMD = $750,000 / 25.3

Doing the math gives us:

RMD = $29,644.27

This means for this year, you’ll need to withdraw $29,644.27 from your retirement account. This ensures you comply with IRS regulations while starting to use your retirement savings.

Why is this important?

Understanding your RMD helps you plan your finances effectively, ensuring you withdraw the correct amount to avoid any penalties. If you have any questions or need personalized advice, it’s always a good idea to consult with a financial advisor.

Scenario 2: 74 Year old Non-Married $750,000 IRA Account Value

Managing your retirement accounts can be simplified with a clear understanding of your Required Minimum Distribution (RMD). Let’s walk through how your RMD is calculated using a straightforward approach.

Your Details:

  • Your Date of Birth: December 4, 1949
  • Your Age: 74
  • Marital Status: Not Married
  • Account Balance as of December 31 last year: $750,000

The IRS requires individuals of a certain age to withdraw a minimum amount from their retirement accounts each year, known as the Required Minimum Distribution, or RMD.

How We Calculate Your RMD:

  1. Find Your Age Factor: According to the IRS Uniform Lifetime Table, the factor for someone who is 74 years old and not married is 24.6.
  2. Use Your Account Balance: Your account balance as of December 31st last year is $750,000.

Here’s the simple formula to calculate your RMD:

RMD = Account Balance / Age Factor

Now, let’s plug in your numbers:

RMD = $750,000 / 24.6

Doing the math gives us:

RMD = $30,487.80

This means for this year, you’ll need to withdraw $30,487.80 from your retirement account. This ensures you comply with IRS regulations while starting to use your retirement savings.

Why is this important?

Understanding your RMD helps you plan your finances effectively, ensuring you withdraw the correct amount to avoid any penalties. If you have any questions or need personalized advice, it’s always a good idea to consult with a financial advisor.

RMD FAQs
What types of retirement plans require RMDs?
Required minimum distribution rules apply to all employer-sponsored retirement plans, including:
  • 401(k)s
  • 403(b)s
  • 457(b)s
  • Profit-Sharing Plans
As well as traditional IRAs and IRA-based plans such as SEPs, SARSEPs, and SIMPLE IRAs.
This information should not be used as tax advice. Please consult your tax advisor for your specific scenario.
When do you have to start taking RMDs?
You must begin taking RMDs for the year you turn age 72. Non-spouse beneficiaries who inherited an IRA in 2020 or later must generally distribute the entire balance within ten years.
This information should not be used as tax advice. Please consult your tax advisor for your specific scenario.
How is an RMD calculated?
To calculate your RMD, divide the year-end balance of your tax-deferred retirement account by the distribution period determined by the IRS.
This information should not be used as tax advice. Please consult your tax advisor for your specific scenario.
Can you withdraw more than the RMD amount?
Yes, you can withdraw more than the RMD amount, but the excess won't count toward your RMDs for future years.
This information should not be used as tax advice. Please consult your tax advisor for your specific scenario.
Do Roth IRAs have RMDs?
Roth IRAs do not have RMDs during the account owner's lifetime. Beneficiaries of Roth IRAs, however, must follow RMD rules.
This information should not be used as tax advice. Please consult your tax advisor for your specific scenario.
How are RMDs taxed?
RMDs are generally taxed as ordinary income. If the contributions were made with after-tax dollars, a portion of the RMD may not be taxed.
This information should not be used as tax advice. Please consult your tax advisor for your specific scenario.
Can you delay your first RMD?
You can delay your first RMD until April 1 of the year after you turn 72. However, if you do, you'll need to take two RMDs in that year.
This information should not be used as tax advice. Please consult your tax advisor for your specific scenario.
What happens if I don't take my RMD?
If you fail to take your RMD, you may be subject to a penalty. The SECURE Act 2.0 reduces the 50% penalty to 25% for missed RMDs, effective for RMDs in 2023. Timely correction of the missed RMD can reduce the penalty to 10%. Always follow IRS guidelines and consult your tax advisor.
This information should not be used as tax advice. Please consult your tax advisor for your specific scenario.
Which retirement accounts are subject to RMDs?
RMDs must be taken from the following retirement accounts:
  • IRAs (Traditional, Rollover, Inherited, SEP, SIMPLE)
  • Qualified Retirement Plans (QRP/Keogh, Individual 401(k), 403(b)(7))
This information should not be used as tax advice. Please consult your tax advisor for your specific scenario.
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