RMD Calculator

RMD Calculator

Once a person reaches the age of 73, the IRS requires retirement account holders to withdraw a minimum amount of money each year – this amount is referred to as the Required Minimum Distribution (RMD). This calculator calculates the RMD depending on your age and account balance. The calculations are based on the IRS Publication 590-B, so the calculator is intended for residents of the United States only.

RMDs: Required Minimum Distributions

A required minimum distribution (RMD) is the minimum amount the IRS mandates you to withdraw from certain tax-deferred retirement accounts. The specific amount varies based on your account balance and life expectancy as determined by the IRS. As you withdraw your RMD, you will also pay taxes. (Note that RMDs are just that: required minimum distributions. So, if you need to pull more money from your accounts after reaching retirement age, you can.)

Important Dates for Taking RMDs

You’re required to take your first RMD by April 1^st in the calendar year after you turn 73. This age was increased from 72 due to the passage of the SECURE Act 2.0 in December 2022. It is scheduled to increase again to 75 in 2033. Prior to 2019, the RMD age was 70.5. It was then increased to 72 due to the passage of the SECURE Act in 2019.

Technically RMDs are due every December 31, but the IRS allows you to delay the first withdrawal. If you take this route, you’ll have to take a second RMD before December 31. Taking two RMDs in one year creates two taxable events – and might even push you into a higher tax bracket.

For every calendar year after you take a distribution, you have to withdraw your entire RMD by December 31. This deadline offers flexibility in determining when and how much you withdraw (as long as you meet your RMD amount by the end of the year).

Example:

After turning 73 in 2025, you can take your first RMD in 2025 or delay it until April 1^st of 2026. You still need to take your second RMD by December 31, 2026, and withdraw RMDs every calendar year after that by December 31.

How to Delay RMD Deadlines

The IRS gives retirees a break after they turn 73 by allowing you to delay your first withdrawal until April 1 of the next year. Another way to delay your RMD is by continuing employment at the company that sponsors your retirement account after your 73^rd birthday. Assuming you own less than 5% of the company in question, you can delay your first RMD until retirement.

That said, you’ll still have to take RMDs from any other retirement accounts you have, such as IRA account. And once you leave the company, the RMD mandate kicks in for that account, too.

How RMDs are Calculated

Calculating your RMD follows these steps based on IRS guidelines

1. Determine the individual retirement account balance as of December 31 of the prior year
2. Find the distribution period (or “life expectancy”) that corresponds to your age on the appropriate IRS table
3. Divide #1 by #2 to determine your RMD amount

However, the exact IRS table you’ll need depends on your marital or inheritance situation. (You can find these life expectancy tables in the IRS’s Publication 590-B; we’ve also included them below.)

If you’re…

• Married to a spouse less than ten years younger than you: You’ll use the IRS Uniform Lifetime Table.
• Married to a spouse over ten years younger and they’re your sole beneficiary: You’ll use the IRS Joint Life and Last Survivor Expectancy Table instead.

While this method makes it possible to calculate your RMD by hand, our RMD calculator simplifies the process even more. Just input the required information and we’ll do the hard work for you!

What Retirement Accounts do RMDs Apply to?

Most tax-advantaged and defined contribution retirement accounts impose RMD requirements. These include:

• Traditional IRAs
• SEP IRAs
• SIMPLE IRAs
• Rollover IRAs
• Traditional 401(k) plans
• Most 403(b) and 457(b) plans
• Variable annuities held in an IRA (“qualified annuities”)
• Profit-sharing plans
• Small business retirement accounts