RMD Calculator

An RMD is the minimum amount you must withdraw annually from tax-deferred retirement accounts like Traditional IRAs, 401(k)s, and 403(b)s starting at age 73 (under the SECURE 2.0 Act). The amount is calculated by dividing your account balance by an IRS life expectancy factor. Failing to take your full RMD results in a 25% penalty on the shortfall.

Under current law (SECURE 2.0 Act), RMDs begin at age 73 for those born between 1951-1959, and age 75 for those born in 1960 or later. Your first RMD must be taken by April 1 of the year following the year you turn 73. Subsequent RMDs are due by December 31 each year. Roth IRAs do not require RMDs during the owner's lifetime.

Yes, you can always withdraw more than the minimum required amount. However, excess withdrawals do not count toward future years' RMDs. All withdrawals from Traditional accounts are taxed as ordinary income. Some retirees strategically withdraw more in lower-income years to reduce the tax impact of larger RMDs later when balances may have grown.

Strategies include converting Traditional IRA funds to a Roth IRA before RMDs begin (paying tax now at potentially lower rates), making Qualified Charitable Distributions (QCDs) of up to $100,000 directly to charity from your IRA, and spreading conversions across multiple years to stay in lower tax brackets.