What is a Required Minimum Distribution (RMD)?

An RMD is the minimum amount the IRS requires you to withdraw each year from traditional IRAs, 401(k)s, and most other tax-deferred retirement accounts once you reach the required beginning date. The money has never been taxed, so the government eventually requires distributions so it can collect income tax.

Under the SECURE 2.0 Act, RMDs generally begin at age 73 if you were born between 1951 and 1959, or at age 75 if you were born in 1960 or later. The first RMD can be delayed until April 1 of the year after you turn 73, but you would then owe two RMDs in that second year.

How is the RMD amount calculated?

Your RMD equals your prior December 31 account balance divided by a life expectancy factor (distribution period) from the IRS Uniform Lifetime Table. This table is updated every year - as you age, the distribution period decreases, requiring larger proportional withdrawals.

What happens if I miss an RMD?

The IRS levies an excise tax of 25% of the amount not withdrawn (reduced to 10% if corrected within two years). This is one of the steepest penalties in the tax code. It is important to track your RMD deadline each year. The IRS has provided some penalty waivers for recent years as rules changed.

Do Roth IRAs have RMDs?

No. Roth IRAs are not subject to RMDs during the original owner's lifetime. Roth 401(k)s were subject to RMDs until 2024, but the SECURE 2.0 Act eliminated Roth 401(k) RMDs starting in 2024. Inherited Roth IRAs do have distribution requirements.

Required Minimum Distribution (RMD) Calculator

Age	Starting Balance	Divisor	RMD	End Balance
75	$500,000	24.6	$20,325	$503,659
76	$503,659	23.7	$21,251	$506,527
77	$506,527	22.9	$22,119	$508,629
78	$508,629	22	$23,119	$509,785
79	$509,785	21.1	$24,160	$509,906
80	$509,906	20.2	$25,243	$508,896
81	$508,896	19.4	$26,232	$506,797
82	$506,797	18.5	$27,394	$503,373
83	$503,373	17.7	$28,439	$498,681
84	$498,681	16.8	$29,683	$492,447
85	$492,447	16	$30,778	$484,753
86	$484,753	15.2	$31,892	$475,504
87	$475,504	14.4	$33,021	$464,607
88	$464,607	13.7	$33,913	$452,229
89	$452,229	12.9	$35,056	$438,031

Age

Starting Balance

Divisor

RMD

End Balance

$500,000

24.6

$20,325

$503,659

23.7

$21,251

$506,527

22.9

$22,119

$508,629

$23,119

$509,785

21.1

$24,160

$509,906

20.2

$25,243

$508,896

19.4

$26,232

$506,797

18.5

$27,394

$503,373

17.7

$28,439

$498,681

16.8

$29,683

$492,447

$30,778

$484,753

15.2

$31,892

$475,504

14.4

$33,021

$464,607

13.7

$33,913

$452,229

12.9

$35,056

$438,031

RMD schedule
X	Balance	RMD
75	$500,000	$20,325
76	$503,659	$21,251
77	$506,527	$22,119
78	$508,629	$23,119
79	$509,785	$24,160
80	$509,906	$25,243
81	$508,896	$26,232
82	$506,797	$27,394
83	$503,373	$28,439
84	$498,681	$29,683
85	$492,447	$30,778
86	$484,753	$31,892
87	$475,504	$33,021
88	$464,607	$33,913
89	$452,229	$35,056

RMD schedule

Balance

RMD

$500,000

$20,325

$503,659

$21,251

$506,527

$22,119

$508,629

$23,119

$509,785

$24,160

$509,906

$25,243

$508,896

$26,232

$506,797

$27,394

$503,373

$28,439

$498,681

$29,683

$492,447

$30,778

$484,753

$31,892

$475,504

$33,021

$464,607

$33,913

$452,229

$35,056

What is an RMD?

A Required Minimum Distribution is the amount the IRS mandates you withdraw each year from a traditional IRA, 401(k), 403(b), or other tax-deferred retirement account. Because contributions and growth were never taxed, the government requires periodic distributions to collect income tax during your lifetime.

When do RMDs begin?

The SECURE 2.0 Act (effective 2023) raised the RMD start age:

Born before 1951: RMDs began at age 72 (prior law)
Born 1951–1959: RMDs begin at age 73
Born 1960 or later: RMDs begin at age 75

This calculator uses age 73 as the default start, consistent with current law for most retirees. Your first RMD can be delayed until April 1 of the following year, but doing so means two distributions in that year.

The IRS Uniform Lifetime Table

Most account holders use the Uniform Lifetime Table (Table III in IRS Publication 590-B), which provides a life expectancy factor for each age. Your RMD equals:

RMD = Prior December 31 account balance ÷ Distribution period (life expectancy factor)

For example, at age 75 the factor is 24.6. A $500,000 account balance produces an RMD of approximately $20,325. As you age, the factor decreases, so the required withdrawal percentage grows each year.

Penalty for missing an RMD

The excise tax for failing to take a full RMD is 25% of the shortfall (reduced to 10% if corrected within two years). Filing Form 5329 and correcting the distribution promptly is the best course of action if you miss a deadline.

Strategies around RMDs

Roth conversions: Converting traditional IRA funds to a Roth IRA before RMD age reduces future required distributions and creates tax-free growth. The conversion itself is a taxable event.

Qualified Charitable Distributions (QCDs): If you are age 70½ or older, you can donate up to $105,000 per year (2024) directly from an IRA to a charity. The QCD counts toward your RMD but is not included in taxable income.

Inherited IRA RMD rules

The SECURE Act 2.0 significantly changed inherited IRA distribution rules:

Non-spouse beneficiaries (inherited 2020 or later): must empty the account within 10 years of the original owner’s death. There is no annual RMD requirement during years 1–9, but the full balance must be withdrawn by year 10 — meaning large taxable distributions can be strategically timed.
Eligible designated beneficiaries (minor child, disabled person, chronically ill, or within 10 years of age of the original owner): can still use the “stretch IRA” life expectancy method.
Spouse beneficiaries: may roll the inherited IRA into their own IRA (delaying RMDs to their own age 73) or treat it as an inherited IRA with more flexible withdrawal options.

First RMD deadline trap

You may delay your very first RMD until April 1 of the year following the year you turn 73. However, this means you must take two RMDs in that single calendar year: the delayed first RMD by April 1, and the second RMD (for the new year) by December 31. Two RMDs in one year can push you into a higher tax bracket, trigger additional Medicare IRMAA surcharges, and increase the taxable portion of your Social Security. For most people, taking the first RMD in the year they turn 73 is the better strategy.