A Required Minimum Distribution (RMD) is the minimum amount you must withdraw from your retirement accounts each year once you reach age 73 (as of 2024). The IRS requires these withdrawals to ensure taxes are paid on retirement savings. You must take your first RMD by April 1 of the year after you turn 73, and subsequent RMDs by December 31 each year.
RMDs apply to Traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k) plans, 403(b) plans, and 457(b) plans. Roth IRAs do not require RMDs during the owner's lifetime, but inherited Roth IRAs may have distribution requirements. The distribution amount is calculated by dividing your account balance by a life expectancy factor from IRS tables.
How to Use This Calculator
Step 1: Enter your current age (must be 73+ for most accounts). Step 2: Enter your retirement account balance as of December 31 last year. Step 3: Select your account type. Step 4: Select beneficiary status. Step 5: Click Calculate to see your RMD.
2024 RMD Rules
Age Requirement: RMDs start at age 73 (increased from 72 by SECURE 2.0 Act).
First RMD Deadline: April 1 of the year after you turn 73.
Subsequent RMDs: December 31 each year.
Penalty: 25% excise tax on amount not withdrawn (can be reduced to 10% if corrected timely).
Combined RMDs: RMDs from multiple IRAs can be taken from one IRA, but 401(k) RMDs must be taken separately.
Still Working: May delay 401(k) RMDs until retirement if not a 5% owner.
Roth 401(k): RMDs required until rolled to Roth IRA.
Tax Treatment: RMDs are taxable income (except for qualified charitable distributions).
Frequently Asked Questions
When do I have to start taking RMDs?
You must start taking RMDs at age 73 for most retirement accounts. Your first RMD is due by April 1 of the year after you turn 73, and all subsequent RMDs are due by December 31.
What happens if I don't take my RMD?
The IRS imposes a 25% excise tax on the amount you should have withdrawn but didn't. This penalty can be reduced to 10% if you withdraw the shortfall and file Form 5329 within two years.
Can I withdraw more than the RMD?
Yes, you can always withdraw more than the required minimum. However, excess withdrawals do not reduce future RMD amounts.
Do Roth IRAs have RMDs?
Roth IRAs do not require RMDs during the original owner's lifetime. However, inherited Roth IRAs may have distribution requirements under the 10-year rule.
How is RMD calculated?
RMD equals your account balance divided by the life expectancy factor from IRS Uniform Lifetime Table. The percentage starts around 3.65% at age 73 and increases as you age.
Can I satisfy RMD by converting to Roth IRA?
No, Roth conversions do not satisfy RMD requirements. You must take the RMD first, then any converted amount counts toward future year conversions.