RMD Calculator
Required minimum distribution.
RMD = balance ÷ factor from your country's life-expectancy table.
How the Math Works
Required Minimum Distribution (RMD) calculations determine the minimum amount that must be withdrawn from traditional IRAs, 401(k)s, and other tax-deferred retirement accounts each year after an individual reaches the IRS-prescribed age threshold. Starting at age 73 (increased from 72 after 2023), the RMD amount is computed by dividing the account's year-end balance by a distribution period drawn from the IRS Uniform Lifetime Table, which provides life expectancy factors based on the account holder's age.
Practical Applications
To apply the RMD calculation, first locate your account's total value as of December 31st of the previous year, then find your single-life expectancy factor from IRS Publication 590-B based on your age. Divide the account balance by this factor to determine your RMD for the current year. For example, if you are 75 with a $500,000 IRA and your life expectancy factor is 22.9, your RMD would be approximately $21,834.
Day-to-Day Use
This calculation ensures you take advantage of your retirement savings while avoiding costly IRS penalties, which can reach 25% of the undistributed amount. Knowing your RMD helps you plan annual withdrawal strategies, coordinate required distributions across multiple retirement accounts, and optimize tax planning by managing your taxable income. By calculating this in advance, you can budget effectively and avoid surprise tax burdens at year-end.
FAQ
Which factor?
Your tax agency publishes age-based tables.