The formula
How it works
Work out your Required Minimum Distribution — the least you must withdraw from a traditional retirement account once you reach the RMD age. It is based on your balance and a life-expectancy factor set by the IRS.
FAQ
When do RMDs start?
Under current rules, RMDs begin at age 73. They apply to traditional IRAs and most workplace plans like 401(k)s, but not to Roth IRAs during the owner’s lifetime.
What if I don’t take my RMD?
Missing an RMD can trigger a steep tax penalty on the amount you should have withdrawn, so it is important to take at least the minimum by the deadline each year.
Do Roth 401(k) accounts require RMDs?
Roth 401(k)s no longer require lifetime RMDs for the original owner under current rules, matching the treatment of Roth IRAs. Traditional pre-tax accounts like traditional IRAs and 401(k)s still do.
Do I need to calculate a separate RMD for each account?
Yes, the RMD is worked out separately for each account using its own balance, but IRA owners can total the results and withdraw the combined amount from any one IRA or a mix of them. Workplace plans like 401(k)s generally must have their RMD taken from that specific plan.
When is my very first RMD due?
Your first RMD can be delayed until April 1 of the year after you reach RMD age, but taking it then means you must also take the second year’s RMD by that same December 31 — doubling that year’s taxable withdrawals. Most people find it simpler to take the first RMD in the year they reach RMD age.
How do inherited retirement accounts affect RMDs?
Rules for inherited IRAs and 401(k)s differ from an owner’s own RMD and depend on your relationship to the original owner and when they died, often requiring the account to be emptied within 10 years. This calculator is built for an account owner’s own RMD, not an inherited one.
Can I reinvest my RMD instead of spending it?
Yes — once withdrawn and taxed, the money can be reinvested in a regular taxable brokerage or savings account, or, if you have earned income, potentially contributed to a Roth IRA. It simply can no longer stay in the original tax-deferred account.
About the RMD calculator
This calculator estimates your Required Minimum Distribution (RMD) — the minimum amount you are required to withdraw each year from a traditional IRA or workplace retirement plan once you reach RMD age. The government requires these withdrawals so that tax-deferred savings are eventually taxed. The amount is set by your account balance and a life-expectancy factor, and it changes each year as both figures move.
How to use it
Enter your account balance as of 31 December last year and your age this year. The calculator looks up the IRS distribution period for your age and divides your balance by it to give the RMD. For example, a $500,000 balance at age 75 has a distribution period of 24.6, giving an RMD of about $20,300. You can take more than this, but not less without risking a penalty.
The formula
The RMD is your balance divided by a distribution period: . The distribution period comes from the IRS Uniform Lifetime Table and gets smaller as you age, which means a larger fraction of the account must be withdrawn each year. The balance used is always the account value on the last day of the previous year.
Where it is used
Retirees use it every year to work out how much they must withdraw from their tax-deferred accounts and to plan the tax impact. Financial advisers calculate RMDs across multiple accounts to keep clients compliant and to coordinate withdrawals efficiently. Because missing an RMD carries a penalty, this is a calculation anyone over the RMD age with a traditional retirement account needs to do annually.