About the RMD Calculator

A Required Minimum Distribution (RMD) is the minimum amount you must withdraw annually from most tax-deferred retirement accounts, such as Traditional IRAs and 401(k)s, once you reach a certain age. The IRS requires these withdrawals to ensure that taxes are eventually paid on these tax-deferred savings. Our RMD Calculator helps you easily determine this amount based on your age and account balance, using the official IRS life expectancy tables.

Key Factors for RMD

• Your Age: The RMD age is currently 73. Your specific age determines the "distribution period" or "life expectancy factor" used in the calculation.
• Account Balance: Your RMD for a given year is based on the total value of your retirement account(s) on December 31st of the *previous* year.
• Beneficiary Status: In most cases, the standard IRS Uniform Lifetime Table is used. However, a different table is used if your sole beneficiary is a spouse who is more than 10 years younger than you, which results in a smaller RMD.

Frequently Asked Questions (FAQ)

When do I have to start taking RMDs?

You must take your first RMD by April 1st of the year *after* you turn 73. For all subsequent years, you must take your RMD by December 31st. Delaying your first RMD until April means you will have to take two distributions in that year, which could have tax implications.

What accounts require RMDs?

RMDs apply to most tax-deferred retirement plans, including Traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k)s, 403(b)s, and 457(b) plans. Roth IRAs do **not** require RMDs for the original owner.

What happens if I don't take my RMD?

Failing to take your full RMD results in a significant penalty. The IRS can charge a 25% excise tax on the amount that was not withdrawn. This penalty can be reduced to 10% if you correct the mistake within a two-year "correction window."