Annual RMD Amount: The minimum dollar amount you must withdraw from your retirement account this year. Taking less than this triggers a 25% penalty on the shortfall (reduced to 10% for certain circumstances).
IRS Life Expectancy Factor: The divisor from the IRS Uniform Lifetime Table that reflects the government's statistical life expectancy at your age. It decreases each year as you age.
RMD as % of Balance: Your annual withdrawal expressed as a percentage of your prior-year balance, showing you how much of your account you are required to draw down annually.
Monthly RMD Equivalent: A rough monthly budget figure if you want to spread your annual RMD evenly throughout the year. In practice, RMDs can be taken in lump sum or multiple withdrawals.
How This Calculator Works
When you reach age 73, the IRS requires you to withdraw a minimum amount from traditional IRAs and 401(k)s each calendar year. The calculation is simple: divide your December 31 account balance from the previous year by your age-based divisor in the IRS Uniform Lifetime Table. The result is your annual RMD. This calculator does not account for Roth IRAs (which have no RMD until after death), inherited accounts, or special situations like substantially equal periodic payments.
Quick Questions
What happens if I don't take my RMD?
The IRS imposes a penalty of 25% on any shortfall from your required minimum distribution (reduced to 10% if you correct it within 2 years and meet other conditions). For example, if your RMD is $10,000 and you only withdraw $6,000, the penalty is $1,000.
Can I take my RMD as a lump sum or in installments?
Yes. The IRS requires you to withdraw the annual amount by December 31, but you can take it as a single withdrawal, monthly installments, quarterly distributions, or any schedule that totals the RMD by year end.
Do Roth IRAs have RMDs?
Roth IRAs have no RMD during your lifetime — you can let the money grow indefinitely. However, beneficiaries who inherit a Roth IRA may face RMD rules depending on their relationship to you and when you opened the account.
What if I have multiple accounts?
You must aggregate all traditional IRAs and calculate a single RMD, but each account can make withdrawals toward that total. 401(k)s, 403(b)s, and similar employer plans are calculated and withdrawn separately.