RMD Calculator

About the RMD Calculator

A Required Minimum Distribution (RMD) is the amount of money that the IRS requires you to withdraw annually from most retirement accounts once you reach a certain age (currently age 73). This applies to traditional IRAs, 401(k)s, and other qualified retirement plans. Failing to take your RMD on time can result in significant tax penalties.

How it Works

This calculator helps you estimate your RMD for the year based on two simple inputs:

• Your Age: Your age as of the end of the current year. This is used to find your 'distribution period' from the IRS's Uniform Lifetime Table.
• Account Balance: The fair market value of your retirement account as of December 31st of the previous year.

The calculator divides your account balance by the distribution period factor to determine your RMD for the current year.

Why RMDs are Important

The government allows you to defer paying taxes on the money in your traditional retirement accounts for decades. RMDs are the mechanism by which the government ensures it eventually receives tax revenue from those tax-deferred savings. This calculator gives you a straightforward way to estimate this required withdrawal amount so you can plan accordingly and avoid penalties.

This tool provides an estimate for informational purposes only. Please consult with a qualified financial advisor or tax professional for advice specific to your situation.