What is the RMD?
Required Minimum Distributions force you to withdraw from tax-deferred accounts — traditional IRAs, 401(k)s and similar — starting at age 73. The IRS wants the deferred tax eventually paid.
The amount is your prior-year-end balance divided by a life expectancy factor from the Uniform Lifetime Table. Missing an RMD triggers a penalty of 25% of the shortfall, reduced to 10% if corrected promptly.
Formula & worked example
Age 73: 26.5 · Age 75: 24.6 · Age 80: 20.2 · Age 85: 16.0
Worked example: an $850,000 balance at age 75 has a divisor of 24.6, giving an RMD of $34,553. At a 22% tax rate that is $7,602 in tax, leaving about $26,951 net. The required percentage rises every year as the divisor shrinks.
How to use this rmd calculator
- Use the balance as at 31 December of the previous year.
- Enter your age as at 31 December of the current year.
- Roth IRAs have no RMDs during the owner's lifetime — exclude them.
- The table projects how RMDs rise as you age.
Smart tips
- Roth IRAs have no lifetime RMDs, making them the best account to leave untouched longest.
- Qualified Charitable Distributions of up to $111,000 in 2026 can satisfy your RMD without adding to taxable income.
- Roth conversions in your 60s reduce future RMDs and can lower lifetime tax substantially.
- You may aggregate IRA RMDs and take the total from one account, but 401(k) RMDs must come from each plan separately.
- Large RMDs can trigger higher Medicare premiums through IRMAA — plan ahead.
Frequently asked questions
At what age do RMDs start?
Age 73 under current rules, rising to 75 for those born in 1960 or later. The first RMD may be deferred to 1 April of the following year.
What is the penalty for missing an RMD?
25% of the amount not taken, reduced to 10% if corrected within the correction window.
Do Roth IRAs have RMDs?
Not during the original owner's lifetime. Inherited Roth IRAs do have distribution requirements.
Can I donate my RMD to charity?
Yes. A Qualified Charitable Distribution satisfies the RMD and is excluded from taxable income. The cap is indexed annually and is $111,000 for 2026.
Want the theory behind the numbers? Read our retirement guides on the Money Blog.
Written by Gurjeet Singh, Sharpen Solutions. Last reviewed 15 Oct 2026. Sources: IRS — required minimum distributions: ages and the uniform lifetime table. How we check these numbers.