What this calculator does
This calculator works out your required minimum distribution, the amount the IRS obliges you to withdraw each year from tax-deferred retirement accounts once you reach 73. Enter your account balance, your age, and an expected return, and it returns the first RMD, the balance remaining after it, and a table projecting distributions and balances forward.
The projection matters more than the single first figure. RMDs are calculated with a divisor that falls every year, so the percentage of your balance you must withdraw climbs continuously. Seeing that trajectory is the point, because it shows when forced withdrawals start driving your tax bracket rather than your spending decisions.
When to use it
Most people run it first in the year they turn 73, to work out what has to come out and by when. It is equally valuable a decade earlier, during the window between retiring and 73 when income is often at its lowest, because that is when Roth conversions are cheapest and most effective.
It is also the right tool before a large Traditional to Roth conversion decision, or when weighing qualified charitable distributions. Both are judged against the RMD trajectory rather than a single year, and a projection showing distributions crossing into a higher bracket in your eighties is a far stronger argument than an abstract one.
Understanding the inputs
Account balance should be the December 31 value from the previous year, since that is the figure the IRS calculation actually uses, not today's balance. Combine Traditional IRAs if you plan to aggregate them, but keep employer plans separate because each one must satisfy its own distribution.
Your age determines the divisor from the Uniform Lifetime Table. Note that a different table applies if your sole beneficiary is a spouse more than ten years younger, which produces smaller required withdrawals. Expected return should be modest, typically 4 to 5 percent, because portfolios at this stage usually carry substantial bond exposure.
How is this calculated?
RMD = Account Balance / IRS Distribution Period Factor. Factor at age 73 is 26.5.
A worked example
A $900,000 Traditional IRA at age 73 uses a divisor of 26.5, producing a first RMD of about $33,962, which is 3.77 percent of the balance. That leaves roughly $866,000, and at a 5 percent return the account grows back to about $909,000 by the following year.
The pressure builds with age. At 80 the divisor is 20.2, requiring 4.95 percent of the balance. At 85 it is 16.0, or 6.25 percent, and at 90 it is 12.2, or 8.2 percent. On a balance that has kept growing, that rising percentage means the dollar amounts climb sharply even in a flat market.
Limitations and assumptions
The first RMD figure is arithmetically exact given your balance and age. Everything beyond it is a projection under assumptions rather than a prediction, since it applies one flat return every year while real balances move with markets, and each year's actual RMD depends on the prior December 31 value you cannot know in advance.
It also does not calculate the tax you owe, model state taxes, apply the spousal beneficiary table, account for the still-working exception, or show the knock-on effects on Social Security taxation and Medicare IRMAA surcharges. Those secondary effects often cost more than the distribution itself, so confirm the plan with a tax professional.
Common Questions
- At what age do RMDs start?
- Age 73 under SECURE 2.0 for anyone reaching 72 after 2022, rising to 75 for those born in 1960 or later. Your first distribution can be delayed to April 1 of the year after you turn 73, but doing so forces two distributions into one tax year, which often pushes you into a higher bracket.
- How is the RMD amount calculated?
- Divide your December 31 balance from the prior year by the distribution period factor for your age in the IRS Uniform Lifetime Table. At 73 the factor is 26.5, so a $900,000 balance produces an RMD of about $33,962. The factor shrinks each year, so the percentage you must withdraw rises steadily.
- Which accounts have RMDs?
- Traditional IRAs, SEP and SIMPLE IRAs, and employer plans including 401(k), 403(b) and 457(b). Roth IRAs never had lifetime RMDs, and since 2024 Roth 401(k)s no longer do either. If you still hold a Roth 401(k) balance, rolling it to a Roth IRA removes any remaining ambiguity.
- What is the penalty for missing one?
- SECURE 2.0 cut the excise tax from 50 percent to 25 percent of the amount not taken, dropping to 10 percent if you correct it promptly and file Form 5329 within the correction window. It is still one of the harshest penalties in the tax code, and it applies to the shortfall, not the account.
- Can I take RMDs from just one account?
- It depends on the account type. IRA RMDs are calculated per account but may be aggregated and taken from any one of them. Employer plan RMDs cannot be aggregated: each 401(k) or 403(b) must satisfy its own. This is a common and expensive point of confusion.
- Do I still have to take one if I am working?
- For IRAs, yes, regardless of employment. For an employer plan, the still-working exception can delay RMDs from that particular plan until you retire, provided the plan allows it and you do not own 5 percent or more of the business. Balances from former employers are not covered.
- Can I avoid tax by donating the distribution?
- Partly. A qualified charitable distribution lets those aged 70 and a half or older send up to $108,000 in 2025 directly from an IRA to charity, and it counts toward the RMD while staying out of adjusted gross income. That is better than a deduction because it also keeps Medicare premium thresholds down.
- How can I reduce future RMDs?
- The main tool is Roth conversions in the low-income window between retiring and age 73, when your marginal rate is often at its lowest for decades. Every dollar converted is removed from the Traditional balance permanently. Qualified charitable distributions and drawing the Traditional account down early also help.
- What tax is withheld from an RMD?
- The default is 10 percent for IRAs, which you can adjust or waive, and 20 percent mandatory withholding on eligible rollover distributions from employer plans. Withholding is not the tax owed. The distribution is ordinary income and may also make more of your Social Security taxable and raise your Medicare IRMAA bracket.