RMD Calculator

What is RMD (Required Minimum Distribution)?

RMD stands for "Required Minimum Distribution." It's the amount of money you are required to withdraw from your retirement accounts, like an IRA or 401(k), once you reach a certain age. The government wants to make sure you don’t keep your retirement savings forever without paying taxes on it.

What is the RMD Calculator?

The RMD Calculator helps you figure out how much you need to withdraw from your retirement account each year. It calculates your required minimum distribution based on your age, account balance, and the type of account you have.

How RMD Calculator Works

To use the RMD Calculator, you need to enter three details:

• Your Current Age: The age you are right now.
• Account Balance as of December 31: The total amount of money you have in your retirement account.
• Account Type: The type of retirement account you have (Traditional IRA, Roth IRA, or 401(k)).

Once you enter these, the calculator will tell you how much money you need to withdraw each year and how much that will be every month. It also shows you how much tax you might owe on the withdrawal and how much you'll receive after tax.

How the RMD Calculator Works

The RMD Calculator uses a table called the "Uniform Lifetime Table" to calculate the distribution period based on your age. This table tells you how many years your account balance will be spread out over. It divides your account balance by the number of years in the table to determine how much you need to take out each year.

Frequently Asked Questions (FAQs)

• What is an RMD?
  An RMD is the minimum amount of money you must take out of your retirement accounts, like an IRA or 401(k), once you reach age 73. The government requires this to make sure you pay taxes on your savings.
• When do I need to start taking RMDs?
  You must start taking RMDs from most retirement accounts when you turn 73. Roth IRAs don’t require RMDs during your lifetime, but Roth 401(k)s do.
• How do I use the RMD Calculator?
  Enter your current age, your account balance, and select the type of account you have. The calculator will tell you how much you need to withdraw each year and month, as well as how much tax you might owe.
• What happens if I don’t take my RMD?
  If you don’t take your RMD, you could face a big penalty of 25% of the amount you were supposed to withdraw, so it’s very important to take it on time!
• Do I have to pay taxes on my RMD?
  Yes, you have to pay taxes on your RMD. The calculator gives an estimate based on the average 22% tax rate, but your actual tax rate could be different. Always check with a tax advisor for your specific situation.

For more information on RMDs, you can check out Wikipedia's article on Required Minimum Distributions.

Updated on February 12, 2026