About the RMD Calculator
Once you reach a certain age, the IRS requires you to start withdrawing from traditional retirement accounts whether you need the money or not. Missing that withdrawal is expensive, so this calculator applies the same table the IRS uses to show exactly how much you're required to take out this year.
How It Works
You enter your account balance as of December 31 of the prior year and your age this year. The calculator looks up the IRS Uniform Lifetime Table divisor for your age and divides your balance by that number to find your required minimum distribution (RMD).
Formula & Methodology
The Uniform Lifetime Table assigns a life-expectancy-based divisor to each age, starting at 26.5 for age 73 and shrinking every year after that, down to 6.4 at age 100. Because the divisor gets smaller as you age, the required percentage of your balance you must withdraw actually increases each year, even if your balance stays flat, since a shrinking divisor applied to the same balance produces a larger RMD. Under SECURE 2.0, the age RMDs begin at is 73 for most people, and is scheduled to rise to 75 starting in 2033.
Examples
First RMD year
A $500,000 balance at age 73 uses a divisor of 26.5, producing a required minimum distribution of about $18,868 for the year, or roughly $1,572 a month.
A decade later
The same $500,000 balance at age 83 uses a much smaller divisor of 17.7, pushing the required distribution up to about $28,249, even without any additional growth in the account.
Advantages
- Uses the actual IRS Uniform Lifetime Table divisors, not an approximation
- Shows the distribution period factor alongside the dollar amount for transparency
- Breaks the annual RMD down into a monthly equivalent
Common Mistakes
- Missing an RMD entirely, which can trigger an IRS excise tax of up to 25% of the amount not withdrawn
- Assuming the required percentage stays the same each year, when it actually increases as the divisor shrinks with age
- Using the Uniform Lifetime Table when a spouse-beneficiary situation calls for the Joint Life table instead
Edge Cases to Watch For
- This calculator's table starts at age 73, matching the current SECURE 2.0 requirement for most traditional IRA and 401(k) owners, though the specific starting age depends on your birth year.
- A spouse who is the sole beneficiary and more than 10 years younger uses a different, more favorable table (the Joint Life and Last Survivor table), not the Uniform Lifetime Table this calculator uses.
- Roth IRAs are not subject to RMDs during the original owner's lifetime, unlike traditional IRAs and most employer plans.
Common Use Cases
- Calculating this year's required withdrawal from a traditional IRA or 401(k)
- Planning ahead for how RMDs will grow as a percentage of the account over time
- Estimating the tax impact of an upcoming required distribution