RMD Calculator

Frequently Asked Questions

At what age do RMDs start?

RMDs start at age 73 under the SECURE 2.0 Act (for those who turned 72 after 2022). You can delay the very first RMD to April 1 of the following year, but this causes two RMDs in the same year, which is often not advisable.

How is the RMD amount calculated?

RMD = prior year-end balance ÷ life expectancy factor. The factor comes from the IRS Uniform Lifetime Table in Publication 590-B and is based solely on your age. At 73, the factor is about 26.5, meaning roughly 3.8% of the balance must be withdrawn.

What is the penalty for missing an RMD?

25% of the amount you should have taken (down from 50% under SECURE 2.0). If corrected within two years, the rate drops to 10%. The IRS often waives the penalty for first-time failures. File Form 5329 to request a waiver.

Can I give my RMD to charity to avoid taxes?

Yes - through a Qualified Charitable Distribution (QCD). You can direct up to $105,000/year from an IRA (age 70½+) to a qualified charity. The amount counts as your RMD but is excluded from your taxable income. This is the most tax-efficient charitable giving option for most retirees.

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Estimates for informational purposes only.

Important Disclaimer: Estimates for informational purposes only.

This calculator provides estimates for informational purposes only. Results are based on assumptions and may not reflect actual outcomes. Consult qualified professionals in relevant fields before making important decisions based on these results.

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How This Calculator Works

The IRS requires you to take a minimum withdrawal from most retirement accounts starting at age 73 (under SECURE 2.0). The formula is straightforward: RMD = account balance as of December 31 of the prior year ÷ life expectancy factor. The life expectancy factor comes from the IRS Uniform Lifetime Table (Publication 590-B), which is the default for most account owners. If your sole beneficiary is a spouse more than 10 years younger, you may use the Joint Life and Last Survivor Table, which produces lower RMDs.

This calculator projects your RMD for the current year and future years, showing how the balance and withdrawal amount evolve assuming a constant return rate. The projection helps you anticipate large RMDs that could push you into higher tax brackets or trigger IRMAA surcharges, giving you time to act proactively.

When RMDs Begin and Key Deadlines

Under the SECURE 2.0 Act (effective 2023), RMDs begin at age 73. The first RMD can be delayed to April 1 of the year after you turn 73, but taking two RMDs in one year (the delayed first and the second) can create a large income spike. Most planners recommend taking the first RMD in the year you turn 73 to avoid the double-distribution year.

Subsequent RMDs must be taken by December 31 of each year. RMDs apply to: traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k)s, 403(b)s, 457(b) plans, and other defined contribution plans. Roth IRAs are exempt from RMDs during the original owner's lifetime (though inherited Roth IRAs are not).

RMD Penalty and Relief Provisions

Failing to take the full RMD results in an excise tax of 25% of the shortfall (reduced from 50% under SECURE 2.0). However, if you correct the failure within two years, the rate drops further to 10%. The IRS frequently waives the penalty entirely for first-time failures with reasonable cause when you file Form 5329 with a waiver request.

If you inherit an IRA, separate RMD rules apply. Under the 10-year rule for most non-spouse beneficiaries (SECURE Act), there is no annual RMD requirement for years 1-9, but some situations require annual distributions if the original owner had already begun RMDs - consult the specific IRS guidance for your situation.

Aggregation Rules for Multiple Accounts

IRA aggregation: If you have multiple traditional IRAs, you calculate the RMD for each account separately (using each account's balance and the same age-based factor), but you can take the total RMD from any one or combination of your IRAs. You do not need to withdraw proportionally from each.

401(k) aggregation: Unlike IRAs, 401(k) RMDs cannot be aggregated. Each 401(k) account must satisfy its own RMD separately - you cannot take a 401(k) RMD from one account to cover another. This is a key reason many retirees roll 401(k) balances into an IRA at or after retirement: it simplifies RMD management into a single calculation.

Strategies to Manage Future RMDs

Roth conversions before 73: Converting traditional IRA money to Roth reduces the RMD-generating balance. Every dollar converted is a dollar that will never generate an RMD.

Qualified Charitable Distributions (QCDs): Directly transferring up to $105,000/year from an IRA to a qualified charity satisfies your RMD obligation without adding to taxable income. This is available starting at age 70½.

Still working exception: If you are still working at 73 and participating in your current employer's 401(k), RMDs from that specific plan may be deferred until you retire. IRAs and old 401(k)s are not covered by this exception.

Delay large IRA rollovers: Rolling a 401(k) to an IRA before retirement is usually wise, but consider timing: rolling in the same year RMDs begin means the entire balance of the rolled-in account is immediately subject to RMDs.

Tax laws change frequently. Verify current limits at IRS.gov and consult a qualified financial advisor before making retirement decisions.

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