RMD Calculator

What Is a Required Minimum Distribution?

A Required Minimum Distribution (RMD) is the minimum amount you must withdraw annually from tax-deferred retirement accounts (traditional IRA, 401(k), 403(b), 457) once you reach the required beginning age. Enter your account balance and age in the calculator above to see the life expectancy factor, annual RMD amount, monthly equivalent, and remaining balance after the distribution. The IRS mandates RMDs to ensure that tax-deferred retirement savings are eventually taxed as income rather than being sheltered indefinitely.

RMD Starting Age and SECURE Act Changes

The SECURE 2.0 Act raised the RMD starting age: age 73 for individuals born 1951-1959. Age 75 for those born 1960 or later. Previously, RMDs began at 70.5 (pre-2020) then 72 (2020-2022). Missing or underwithdrawing triggers a penalty of 25% of the shortfall amount (reduced from the previous 50% by SECURE 2.0). If corrected within 2 years, the penalty drops to 10%. Your first RMD must be taken by April 1 of the year following the year you reach the applicable age. Subsequent RMDs are due by December 31 each year. Taking the first RMD in the following April means two RMDs in one calendar year (the delayed first and the current year), potentially pushing you into a higher tax bracket.

How Are RMDs Calculated?

RMD = Account balance as of December 31 of the prior year / IRS life expectancy factor for your age. At age 73: factor 26.5. $500,000 balance / 26.5 = $18,868 annual RMD. At 75: factor 24.6. $480,000 / 24.6 = $19,512. At 80: factor 20.2. $400,000 / 20.2 = $19,802. At 85: factor 16.0. $300,000 / 16.0 = $18,750. At 90: factor 12.2. $200,000 / 12.2 = $16,393. The factor decreases each year, meaning a larger percentage of the remaining balance must be withdrawn as you age. The distribution amount fluctuates annually based on both the changing factor and the account performance.

Which Accounts Require RMDs?

Subject to RMDs: traditional IRA, SEP-IRA, SIMPLE IRA, 401(k), 403(b), 457(b), and other employer-sponsored defined contribution plans. Not subject to RMDs during the owner lifetime: Roth IRA (one of Roth most significant advantages). Roth 401(k) previously required RMDs but is now exempt starting in 2024 under SECURE 2.0. If you have multiple traditional IRAs, calculate the RMD for each separately but you can satisfy the total from any combination of your traditional IRAs. Employer plans (401(k), 403(b)) must have RMDs taken from each plan individually - they cannot be aggregated across different employer accounts.

Tax Impact of Required Minimum Distributions

RMDs are taxed as ordinary income at your marginal federal and state rate. A $20,000 RMD for someone in the 22% federal bracket and 5% state: $5,400 in taxes. This can also affect Social Security taxation (up to 85% of SS becomes taxable above income thresholds), Medicare premiums (IRMAA surcharges begin at $103,000 single, $206,000 married MAGI), and capital gains tax rates (RMD income fills lower brackets, potentially pushing investment income into higher capital gains tiers). Strategic Roth conversions in the years before RMDs begin (ages 60-72) can reduce future RMD amounts and their cascading tax effects by moving money from tax-deferred to tax-free accounts.

Strategies to Minimize RMD Tax Impact

Qualified Charitable Distribution (QCD): taxpayers 70.5+ can donate up to $105,000 directly from an IRA to a qualified charity. The distribution satisfies the RMD but is excluded from taxable income. A $20,000 RMD donated via QCD saves $4,400-$7,400 in taxes (at 22-37% bracket). Roth conversions before RMD age: converting traditional IRA funds to Roth during lower-income years pays tax now at a potentially lower rate to avoid forced distributions at higher rates later. Charitable remainder trusts, donor-advised funds, and strategic timing of RMDs across multiple accounts provide additional optimization levers for larger portfolios with significant RMD obligations.

Still Working Exception for 401(k) RMDs

If you are still employed and own less than 5% of the company, you can delay RMDs from your current employer 401(k) until April 1 of the year following retirement - even past age 73 or 75. This exception applies only to the current employer plan, not to IRAs or previous employer plans. Rolling old 401(k) balances into your current employer plan (if permitted) can shelter those funds under this exception as well. A 74-year-old still working with $300,000 in a current 401(k) and $200,000 in a traditional IRA: RMDs required only on the $200,000 IRA. The $300,000 in the current employer plan is exempt until retirement.

RMD Aggregation Rules

For traditional IRAs: calculate the RMD separately for each account, but you can withdraw the total from any single IRA or combination. Three IRAs with RMDs of $5,000, $8,000, and $12,000 ($25,000 total): you can take the entire $25,000 from just one account. This provides flexibility to withdraw from the worst-performing account (tax-loss harvesting the decline) or the most liquid account. For 403(b) accounts: same aggregation rule applies. For 401(k)s: each plan RMD must be taken from that specific plan. You cannot satisfy a 401(k) RMD from an IRA or vice versa. Understanding these aggregation rules enables smarter withdrawal sequencing that can reduce taxes and optimize portfolio management.

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