RMD (Required Minimum Distribution) Calculator
Estimate the mandated withdrawal amount from your IRA or 401(k) to avoid IRS penalties.
Account Details (USD)
Must be 73 or older for RMD mandate (post SECURE Act).
The balance as of December 31st of the previous year.
Calculated RMD Amount
—
USD
RMD Calculation Details
| Distribution Period (ULT Factor): | — |
|---|---|
| Penalty for Failure to Withdraw: | 50% of RMD! |
The RMD Mandate and the Uniform Lifetime Table
The **RMD Calculator** helps retirees comply with the **IRS Required Minimum Distribution** mandate. The IRS requires that beneficiaries of tax-deferred retirement accounts begin withdrawing funds once they reach a certain age (currently 73, phased in by birth year) to ensure taxes are eventually paid.
Calculation Method
The RMD is calculated using the **Uniform Lifetime Table (ULT)**, which provides a **Distribution Period** (life expectancy factor) based on the retiree’s current age.
$$\text{RMD} = \frac{\text{Previous Year-End Account Balance}}{\text{Distribution Period (ULT Factor)}}$$
Severe Penalties (FAQ)
What is the penalty for missing an RMD?
The penalty is severe: an excise tax equal to $\mathbf{25\%}$ of the amount that should have been withdrawn (it was $50\%$ before 2023, but is now $25\%$). This highlights why compliance is mandatory and why this tool is crucial for planning.