About Required Minimum Distributions
Required Minimum Distributions (RMDs) are the minimum amounts that retirement plan account owners must withdraw annually starting with the year they reach a certain age or, if later, the year in which they retire.
Key RMD Rules
- Starting Age: Age 73 (for those born 1951-1959) or age 75 (for those born 1960 or later)
- Deadline: RMDs must be taken by December 31 each year
- First RMD: Can be delayed until April 1 of the year following the year you turn 73 (or 75)
- Penalty: Failure to take RMDs may result in a 25% excise tax on the amount not distributed
Accounts Subject to RMDs
- Traditional IRAs
- SEP IRAs
- SIMPLE IRAs
- 401(k) plans
- 403(b) plans
- 457(b) plans
- Profit-sharing plans
Note: Roth IRAs do not require distributions while the original owner is alive.
Calculating Your RMD
RMDs are calculated by dividing the retirement account balance as of December 31 of the previous year by a life expectancy factor from IRS tables. This calculator uses the Uniform Lifetime Table for account owners.
For inherited IRAs, different rules and tables apply depending on the relationship to the original account owner and when the original owner passed away.
Disclaimer: This calculator provides estimates based on current IRS guidelines. For definitive tax advice, please consult with a qualified tax professional.