How Much Is My RMD?
Your Required Minimum Distribution is your prior year-end retirement account balance divided by an IRS life expectancy factor. For example, a 73-year-old with $500,000 in a Traditional IRA uses a Uniform Lifetime Table factor of 26.5, so the RMD is about $18,868 for the year ($500,000 / 26.5). RMDs currently begin at age 73. Use the calculator below to find your exact distribution amount, then read on for the rules, tables, and tax planning that go with it.
to see your Required Minimum Distribution.
How to Use This RMD Calculator
- Enter your account balance. Use the value of your tax-deferred account as of December 31 of the prior year. This is the figure the IRS formula is based on.
- Enter your age. Put in the age you will reach this year. The calculator pulls the matching IRS Uniform Lifetime Table factor for you.
- Read your result. The calculator divides your balance by the life expectancy factor and shows the minimum amount you must withdraw this year to avoid the IRS penalty.
Patricia is 73 and just took her first look at retirement withdrawals. She has $500,000 in a Traditional IRA and no other tax-deferred accounts. She enters $500,000 as her prior year-end balance and 73 as her age. The calculator applies the Uniform Lifetime Table factor of 26.5 and returns an RMD of about $18,868 for the year.
Patricia does not need all of that income to cover her budget. She decides to take the full $18,868 to satisfy the IRS, then redirect part of it into a Multi-Year Guaranteed Annuity (MYGA) in a non-qualified account so the money she was required to withdraw keeps earning a guaranteed rate. She also reviews a Qualified Longevity Annuity Contract (QLAC) option for a future year, which can move a portion of IRA dollars out of the RMD calculation until as late as age 85.
Before she finalizes the plan, Patricia confirms the tax impact with a tax professional, since the full RMD is taxable as ordinary income in the year she takes it.
Which Retirement Accounts Require RMDs?
Not every retirement account is subject to Required Minimum Distributions, but most tax-deferred accounts are. If you fail to withdraw your required minimum amount you can be charged a costly IRS penalty.
Traditional IRAs are the most common type of IRA. Traditional IRAs are retirement accounts that let you set aside part of your paycheck without paying taxes right away. These Traditional IRAs are subject to an RMD, and you must begin taking withdrawals once you reach the required age.
SEP IRAs and SIMPLE IRAs follow the same RMD rules as Traditional IRAs. Even though these accounts are designed for self-employed individuals and small business employees, the distribution requirements are identical.
Employer-sponsored plans including 401(k), 403(b), and 457(b) accounts also require minimum distributions. One exception: if you are still working at 73 and do not own more than 5% of the company, you can delay RMDs from your current employer’s plan until you retire.
If you are looking for ways to create guaranteed retirement income from these accounts, a Multi-Year Guaranteed Annuity (MYGA) can lock in a fixed rate while satisfying your distribution requirements.
Which Accounts Are Exempt from RMDs?
Roth IRAs are completely exempt from RMDs during the original owner’s lifetime. Because you contributed after-tax dollars, the IRS does not require you to withdraw funds on any schedule. Your money can continue growing tax-free for as long as you live.
Roth 401(k) accounts became exempt from RMDs starting in 2024, thanks to the SECURE Act 2.0. Before this change, Roth 401(k) holders had to take distributions or roll the funds into a Roth IRA to avoid them. That workaround is no longer necessary.
Health Savings Accounts (HSAs) are also exempt from RMDs. If you have an HSA, funds remain available for qualified medical expenses indefinitely with no required withdrawal schedule.
What Is a Required Minimum Distribution?
A Required Minimum Distribution is the smallest amount you must withdraw from your tax-deferred retirement accounts each year once you reach a certain age. The IRS uses RMDs to make sure retirement savings do not grow tax-deferred forever.
Here is a real example. Linda is 75 years old with a $400,000 Traditional IRA balance as of December 31 of the prior year. To calculate her RMD she divides the total value of her IRA ($400,000) by the Uniform Lifetime Table factor for age 75 (24.6).
So the minimum amount she must withdraw is: $400,000 / 24.6 = $16,260.
RMDs are taxed as ordinary income in the year they are withdrawn. This means your distribution could push you into a higher tax bracket, increase your Medicare premiums, or trigger taxes on Social Security benefits. Planning your retirement income strategy around these thresholds can potentially save you thousands in taxes. A Roth conversion calculator can help you see whether converting some IRA dollars before RMDs begin makes sense for you.
At What Age Do RMDs Begin?
Under the SECURE Act 2.0, the RMD starting age depends on your birth year:
- Born 1950 or earlier: RMDs began at age 72 (already in effect)
- Born 1951 through 1959: RMDs begin at age 73
- Born 1960 or later: RMDs begin at age 75, starting in 2033
Your first RMD must be taken by April 1 of the year after you reach the applicable age. Every subsequent RMD is due by December 31. If you delay your first distribution to the following April, you will need to take two RMDs in the same calendar year, which could create a larger tax hit.
For example, if you turned 73 in 2025, your first RMD deadline is April 1, 2026. Your second RMD is due by December 31, 2026. Taking both in the same year means reporting both as taxable income on your 2026 return.
What Happens If You Miss Your RMD?
Missing an RMD triggers a 25% excise tax on the amount you should have withdrawn but did not. Before 2023, this penalty was a steep 50%. The SECURE Act 2.0 reduced it significantly.
There is an additional reduction available. If you correct the missed distribution within two years by withdrawing the required amount and filing an updated tax return, the penalty drops further to 10%.
On a $20,000 missed RMD, the difference matters. The 25% penalty costs $5,000, while a timely correction brings that down to $2,000. Either way, it is money you do not need to lose. Use the calculator above to confirm your exact distribution amount each year.
How Is Your RMD Calculated?
The RMD formula is straightforward:
RMD = Account Balance (Dec. 31 of prior year) / IRS Life Expectancy Factor
The IRS publishes three life expectancy tables, but most people use the Uniform Lifetime Table. You only use a different table if your sole beneficiary is a spouse more than 10 years younger.
Here is a step-by-step example. Robert is 74, and his Traditional IRA held $350,000 on December 31, 2025. The Uniform Lifetime Table assigns a distribution period of 25.5 for age 74. His 2026 RMD is $350,000 / 25.5 = $13,725.
If Robert also has a 401(k) worth $200,000, that account has its own separate RMD: $200,000 / 25.5 = $7,843. However, IRA RMDs can be aggregated and taken from any single IRA. Employer plan RMDs must be taken from each plan individually.
Many retirees use RMD proceeds to purchase guaranteed income. You can compare a lump sum to a stream of payments with our immediate annuity calculator, which shows how much monthly income a given amount of RMD money could buy.
Can You Reinvest Your RMD?
Yes, but not back into the same tax-deferred account. Once withdrawn, you have several options for putting your RMD to work:
Taxable brokerage account. Deposit your RMD into a standard investment account. You have already paid income tax on the withdrawal, so future gains are taxed at capital gains rates rather than ordinary income rates.
Roth conversion strategy. While you cannot directly convert your RMD to a Roth, you can take your RMD and then convert additional IRA funds to a Roth in the same year. This accelerates taxes now but eliminates future RMDs on converted amounts.
Annuity purchase. Using RMD proceeds to fund a MYGA or fixed annuity in a non-qualified account creates guaranteed growth on money you were required to withdraw anyway.
Qualified Charitable Distribution (QCD). If you are 70 1/2 or older, you can direct up to $105,000 per year (2024 limit, indexed for inflation) from your IRA directly to a qualified charity. The QCD counts toward your RMD but is not included in your taxable income.
For a full set of retirement planning tools, visit our annuity calculators hub. For the exact tables and rules, see the IRS Required Minimum Distributions (RMDs) page and IRS Publication 590-B, which contains the Uniform Lifetime Table.
Frequently Asked Questions
Can I take more than my Required Minimum Distribution?
Yes. The RMD is only the minimum amount you must withdraw. You can always take more, though the entire withdrawal is taxed as ordinary income. Taking more than the minimum does not reduce next year’s RMD, since each year’s calculation is based on the prior year-end balance and your current age factor.
Do RMDs apply to inherited IRAs?
Yes, but the rules depend on when you inherited the account and your relationship to the original owner. Most non-spouse beneficiaries who inherited after 2019 must empty the account within 10 years under the SECURE Act. Spouse beneficiaries can treat the IRA as their own and follow standard RMD rules.
What if I have multiple IRAs?
You must calculate the RMD for each Traditional IRA separately. However, the IRS allows you to aggregate those amounts and withdraw the total from any one or combination of your IRAs. This flexibility lets you draw from the account that makes the most strategic sense. Employer plans like 401(k)s do not have this aggregation option.
Are annuity payments considered RMDs?
If an annuity is held inside an IRA or other tax-deferred account, the annuity payments can satisfy your RMD requirement as long as the payments meet or exceed the minimum distribution amount. Many retirees annuitize a portion of their IRA specifically for this purpose. Visit our annuity calculators page to explore how annuitization compares to systematic withdrawals.
When did the RMD age change from 72 to 73?
The SECURE Act 2.0, signed into law in December 2022, raised the RMD starting age from 72 to 73 effective January 1, 2023. It will increase again to 75 in 2033. If you turned 72 in 2022 or earlier, you were already subject to RMDs under the previous rule.
