Required Minimum Distribution (RMD) Calculator

This calculator helps determine the Required Minimum Distribution (RMD) amount that you must withdraw from your tax-deferred retirement accounts when you reach a certain age, typically 72, 73, or 75, depending on your birth year.

Required Minimum Distribution (RMD) Calculator Instructions

What is a Required Minimum Distribution (RMD)?

A Required Minimum Distribution (RMD) is the minimum amount you must withdraw from your tax-deferred retirement accounts each year, starting at a certain age. The IRS requires you to take RMDs to ensure that you pay taxes on the money you’ve saved in these accounts, which have grown tax-free over the years.

How to Use:

1. Enter the total balance of ALL your tax-deferred retirement accounts, including traditional IRAs, 401(k)s, 403(b)s, and other employer-sponsored plans.
2. Enter your age as of December 31st of the current year.
3. Click the “Calculate RMD” button to determine your RMD amount, percentage, and distribution factor.

Important Notes:

• The RMD is calculated based on the Uniform Lifetime Table provided by the IRS. See table below.
• If you turned 72 after December 31, 2022, and before January 1, 2033, your RMD age is 73.
• If you turned 74 after December 31, 2032, your RMD age is 75.
• You must take your first RMD by April 1st of the year after you turn the applicable RMD age. For subsequent years, you must take your RMD by December 31st of each calendar year.
• The distribution factor, also known as the life expectancy factor, is a number used to calculate your RMD. It is based on your age and represents the number of years the IRS expects you to live, according to actuarial tables. The distribution factor decreases as you get older, which means your RMD amount will increase over time.

Example: If you turn 72 in 2024, you must take your first RMD by April 1, 2025. You will then need to take subsequent RMDs by December 31st of each year, starting in 2025.

Note on Lifetime Distributions: While RMDs require you to withdraw a portion of your tax-deferred savings each year, you will never be required to completely withdraw your money. Even at the maximum age listed in the IRS tables, the distribution factor is 2.0, which means you will only need to withdraw 50% of the remaining value of your tax-deferred savings each year. This ensures that you will always have some remaining balance in your accounts, and you will not be forced to deplete your retirement savings entirely.

By using this calculator, you can estimate your RMD and plan for your retirement income accordingly. Consult with a financial advisor or tax professional to ensure you are meeting your RMD requirements, as individual circumstances may vary.

IRS Uniform Lifetime Table

The RMD amount is calculated by finding the Life Expectancy Factor for your age in the table above and dividing your account balance by this factor. Note that if you are over 120 years old, the factor is always 2, meaning the RMD will always be half of your account balance. This implies that if you withdraw only the RMD amount, your account balance will never be completely depleted.

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