What is RMD Calculator?
Calculates minimum legal taxable withdrawal amounts required annually by the IRS from pre-tax retirement accounts once you reach age 73.
How to Use This Calculator
- Enter your current age (73 or older).
- Enter prior year December 31 balance across all Traditional IRAs.
- View required annual distribution amount and monthly schedule.
The Mathematical Formula & Variables
RMD = Prior Year Dec 31 Balance / IRS Life Expectancy Factor
Step-by-Step Worked Example
Scenario: Age 73 with $500,000 balance on Dec 31.
- IRS Uniform Lifetime Table distribution period for age 73 = 26.5.
- RMD = $500,000 / 26.5 = $18,867.92.
- Monthly withdrawal = $1,572.33.
Result: $18,867.92 / year
Frequently Asked Questions
What is the penalty for failing to take an RMD?
Under SECURE 2.0, the penalty is an excise tax of 25% of the untaken RMD amount (reduced to 10% if corrected promptly).