RMD Calculator

What are RMDs?

Required Minimum Distributions are the minimum amounts you must withdraw annually from your tax-deferred retirement accounts starting at a certain age. The IRS requires these withdrawals so that retirement savings are eventually taxed.

RMD Starting Age (SECURE Act 2.0)

• Born 1950 or earlier: RMDs began at age 72
• Born 1951-1959: RMDs begin at age 73
• Born 1960 or later: RMDs begin at age 75

Accounts Subject to RMDs

• Traditional IRAs
• 401(k), 403(b), 457(b) plans
• SEP IRAs and SIMPLE IRAs
• Inherited IRAs (different rules apply)

Accounts NOT Subject to RMDs

• Roth IRAs (during owners lifetime)
• Roth 401(k)s (starting 2024, per SECURE 2.0)

RMD Calculation

RMD = Account Balance (Dec 31 prior year) ÷ Distribution Period

The distribution period comes from IRS life expectancy tables. Most people use the Uniform Lifetime Table. A Joint Life table is used if your sole beneficiary is a spouse more than 10 years younger.

Penalties for Missing RMDs

• 25% excise tax on the shortfall (reduced from 50% by SECURE 2.0)
• Reduced to 10% if corrected within 2 years
• File Form 5329 with your tax return

RMD Strategies

• QCDs: Donate up to $105,000 directly to charity (satisfies RMD, excludes from income)
• Roth conversions: Convert before RMDs begin to reduce future RMDs
• Tax planning: Consider timing of RMDs with other income
• Aggregation: IRAs can be aggregated; 401(k)s must be taken separately