What Is a Required Minimum Distribution?
A Required Minimum Distribution (RMD) is the minimum amount you must withdraw each year from tax-deferred retirement accounts once you reach age 73. The IRS requires it so the taxes deferred for decades in traditional IRAs and 401(k)s finally get paid. Your RMD equals your prior-year-end balance divided by a life-expectancy factor from the IRS Uniform Lifetime Table — at 75, that factor is 24.6, so a $500,000 balance requires a $20,325 withdrawal.
How to Use This RMD Calculator
Enter your account balance as of December 31 last year and your age this year. The calculator applies the correct IRS distribution period and shows your RMD, the equivalent withdrawal rate, a monthly figure, and the penalty you'd face for missing it.
When Do RMDs Start? (SECURE 2.0 Rules)
Under SECURE 2.0, RMDs begin at age 73 for those born 1951–1959, and rise to age 75 for anyone born in 1960 or later. Your first RMD can be delayed until April 1 of the year after you turn 73 — but then you'd take two in one year. Roth IRAs have no RMDsduring the original owner's lifetime, and thanks to SECURE 2.0, Roth 401(k)s no longer require them either.
The Penalty and How to Reduce RMDs
Miss an RMD and the IRS charges a 25% excise tax on the shortfall (reduced to 10% if you correct it promptly) — one of the harshest penalties in the tax code. To shrink future RMDs, consider Roth conversions in lower-income years before 73, or Qualified Charitable Distributions that satisfy the RMD without adding to taxable income. Large RMDs also affect how much of your Social Security is taxable — plan withdrawals together.