Calculate your Required Minimum Distribution (RMD) from retirement accounts. Predict future distributions and plan ahead for retirement withdrawals.
Required Minimum Distributions (RMDs) are mandatory withdrawals from traditional retirement accounts that begin at age 73 (as of 2023). The IRS requires these distributions to ensure that tax-deferred retirement savings are eventually taxed during your lifetime.
RMDs apply to traditional IRAs, 401(k)s, 403(b)s, and most other employer-sponsored retirement plans. Roth IRAs are exempt from RMDs during the owner's lifetime, making them valuable estate planning tools.
Account balance as of December 31st of the prior year
Used for unmarried individuals and married couples where spouse is not more than 10 years younger
Results in lower RMDs due to longer combined life expectancy
| Birth Year | RMD Starting Age | First RMD Deadline | Notes |
|---|---|---|---|
| 1950 or earlier | 70½ | April 1 following year | Previous rule |
| 1951-1959 | 72 | April 1 following year | SECURE Act change |
| 1960 or later | 73 | April 1 following year | SECURE 2.0 change |
| Age | Life Expectancy Factor | Age | Life Expectancy Factor |
|---|---|---|---|
| 72 | 27.4 | 82 | 17.1 |
| 73 | 26.5 | 83 | 16.3 |
| 74 | 25.5 | 84 | 15.5 |
| 75 | 24.6 | 85 | 14.8 |
| 76 | 23.7 | 86 | 14.1 |
| 77 | 22.9 | 87 | 13.4 |
| 78 | 22.0 | 88 | 12.7 |
| 79 | 21.1 | 89 | 12.0 |
| 80 | 20.2 | 90 | 11.4 |
| 81 | 19.4 | 91 | 10.8 |
You can delay the first RMD but must take two distributions in one year
All RMDs after the first must be taken by year-end
Reduced to 10% if corrected within 2 years
| Strategy | Description | Benefits | Considerations |
|---|---|---|---|
| Roth Conversions | Convert traditional IRA to Roth before RMDs | Reduce future RMDs | Pay taxes now on conversion |
| QCD (Qualified Charitable Distribution) | Direct transfer from IRA to charity | Satisfies RMD, no taxable income | Limited to $105,000 per year |
| Asset Location | Place high-growth assets in Roth accounts | Minimize RMD growth over time | Requires advance planning |
| Multiple Account Aggregation | Calculate RMD across all similar accounts | Simplify withdrawals | Must be same account type |
Still Working at 73: You can delay 401(k) RMDs from your current employer if you don't own 5% or more of the company.
Inherited Accounts: Different rules apply for inherited retirement accounts, often requiring faster distributions.
Multiple Accounts: You can aggregate RMDs for multiple IRAs and take the total from one account, but 401(k) RMDs must be calculated and taken separately from each plan.
Spouse More Than 10 Years Younger: Use the Joint and Last Survivor Table for potentially lower RMDs.
Missing the Deadline: The 25% penalty is one of the harshest IRS penalties.
Using Wrong Account Balance: Must use December 31st balance from the prior year.
Forgetting About All Accounts: RMDs required from each traditional 401(k), but IRAs can be aggregated.
Wrong Life Expectancy Table: Using the incorrect table can result in wrong RMD amounts.
Not Planning for Taxes: RMDs are taxed as ordinary income and can push you into higher brackets.
Account Growth Impact: Even with RMDs, accounts can continue growing if investment returns exceed withdrawal rates.
Increasing Withdrawal Rates: As life expectancy factors decrease with age, RMD percentages increase each year.
Estate Planning: Plan for how RMDs affect your legacy and consider strategies to minimize the impact on heirs.