What is a required minimum distribution?
A required minimum distribution (RMD) is the smallest amount you must withdraw each year from most tax-deferred retirement accounts, such as a traditional IRA, SEP IRA, SIMPLE IRA and 401(k), once you reach the starting age. Withdrawals are taxed as ordinary income. Roth IRAs do not require withdrawals during the owner’s lifetime.
When do RMDs start?
- Born 1951 to 1959: age 73.
- Born 1960 or later: age 75, under SECURE 2.0 Act section 107.
- Your first RMD can be delayed until April 1 of the year after you reach the starting age. Every later RMD is due by December 31. Delaying the first one means taking two distributions in the same year, which can raise your tax bracket.
The IRS has not yet reflected the age-75 rule in its latest edition of Publication 590-B, so confirm it with a tax professional. People born before 1951 are already past the starting age and follow the table below.
How the projection works
The calculator takes your balance as of the last December 31, applies the growth rate you enter, and subtracts each year’s RMD. It uses the Uniform Lifetime Table (distribution period 27.4 at age 72, 26.5 at 73, 24.6 at 75, 20.2 at 80, down to 2.0 from age 120 on).
- It assumes a single account, and no withdrawals or contributions besides the RMD.
- It does not use the Joint Life table, which applies when your sole beneficiary is a spouse more than 10 years younger. That table gives smaller RMDs.
- It does not cover inherited accounts, which follow different rules.
- With several IRAs you can total the RMDs and withdraw them from any one; 401(k)s must each be handled separately.
The penalty for missing an RMD is an excise tax on the amount not withdrawn, which can be reduced if you correct the shortfall promptly. Always check your specific situation with the IRS or a tax adviser.
Frequently asked questions
At what age do RMDs start?
Age 73 if you were born from 1951 to 1959, and age 75 if you were born in 1960 or later, under SECURE 2.0. The IRS has not yet published the age-75 rule in its latest Publication 590-B, so confirm your own date with a tax professional.
How is the RMD calculated?
Divide your account balance on December 31 of the prior year by the distribution period from the IRS Uniform Lifetime Table that matches your age this year. For example, a $500,000 balance at age 75 uses a divisor of 24.6, giving about $20,325.
Do Roth IRAs have RMDs?
Not during the original owner’s lifetime. Roth 401(k) accounts also no longer require RMDs for the owner since 2024. Beneficiaries of inherited Roth accounts follow separate rules.
What happens if I miss an RMD?
The IRS charges an excise tax on the amount you failed to withdraw. The rate can be reduced if you correct the shortfall in a timely way and report it. Contact the IRS or a tax professional if this happens.
Can I withdraw more than the RMD?
Yes. The RMD is a minimum, and you can take more, though additional withdrawals are taxable. Withdrawals above the RMD cannot be applied to future years’ RMDs.
Sources
- IRS Publication 590-B: Distributions from IRAs (Uniform Lifetime Table)
- IRS: Retirement plan and IRA required minimum distributions FAQs
This tool is for general information and illustration. It is not personalized advice. Confirm the figures with a qualified professional. See our editorial standards.
