Required Minimum Distributions (RMDs) are the amounts the IRS requires you to withdraw from tax-deferred retirement accounts each year once you reach a certain age. This calculator estimates your annual RMD so you can plan withdrawals and avoid the steep penalty for taking too little.
How RMDs are calculated
Your RMD equals your account balance at the end of the previous year divided by a life expectancy factor from the IRS Uniform Lifetime Table. As you age, the factor shrinks, so the percentage you must withdraw rises each year — starting around 3.8% and climbing steadily thereafter.
When RMDs begin
Under current law, RMDs begin at age 73 for those who reach that age in 2023 through 2032, rising to age 75 in 2033. They apply to traditional IRAs, 401(k)s, 403(b)s, and similar tax-deferred accounts. Roth IRAs are exempt during the original owner's lifetime.
A worked example
At age 73 with a $500,000 traditional IRA balance, the IRS factor is 26.5, giving an RMD of about $18,868 for the year. At age 80, with the same balance the factor drops to 20.2, raising the required withdrawal to roughly $24,750 — reflecting the shorter remaining life expectancy.
Managing RMDs wisely
- Missing an RMD triggers a penalty of 25% of the shortfall (reduced to 10% if corrected promptly), so mark the deadline carefully.
- Consider Qualified Charitable Distributions, which let you donate up to $105,000 directly from an IRA and satisfy your RMD tax-free.
- Roth conversions before age 73 can shrink future RMDs by moving money out of tax-deferred accounts.
- Withdrawals count as ordinary income, so coordinate them to avoid pushing yourself into a higher tax bracket.