RMD Calculator Guide: Required Minimum Distributions Explained (2026)

What Is a Required Minimum Distribution?

When you contribute to a traditional IRA or 401(k), your money grows tax-deferred — meaning you do not pay taxes until you withdraw. The IRS will not let that tax deferral last forever. Required Minimum Distributions (RMDs) are the mechanism Congress uses to ensure tax-deferred retirement savings eventually get taxed.

Starting at age 73, you must withdraw a minimum amount from most retirement accounts each year. That withdrawal is added to your taxable income. Miss it, and the penalty is steep.

Key RMD Statistics

• According to the IRS, roughly 42 million Americans hold traditional IRAs as of the most recent data, and the vast majority will eventually face RMD requirements.
• Fidelity Investments reports the average IRA balance at retirement (ages 65–69) is approximately $200,000–$250,000 for Fidelity customers, though balances vary enormously by savings history.
• The Investment Company Institute (ICI) estimates total IRA assets exceed $13 trillion, making RMD rules among the most financially significant tax regulations affecting American households.
• The SECURE 2.0 Act of 2022 raised the RMD starting age from 72 to 73, with a further increase to age 75 scheduled for 2033.
• The penalty for missing an RMD was reduced from 50% to 25% by SECURE 2.0 (effective 2023), and further to 10% if corrected within two years — a significant reform affecting millions of retirees.

Which Accounts Require RMDs?

Not all retirement accounts have the same rules. Here is a clear breakdown:

Accounts Subject to RMDs

• Traditional IRAs — the most common RMD scenario
• SEP-IRAs (Simplified Employee Pension)
• SIMPLE IRAs
• 401(k) plans (traditional, not Roth)
• 403(b) plans
• 457(b) plans (government employer plans)
• Profit-sharing plans and other defined contribution plans

Accounts NOT Subject to RMDs

• Roth IRAs — no RMDs during the owner’s lifetime (a major tax planning advantage)
• Roth 401(k)s — RMDs eliminated starting January 1, 2024, by SECURE 2.0
• Health Savings Accounts (HSAs) — no RMDs

One important exception: if you are still working at age 73 and participate in your current employer’s401(k), you may be able to delay RMDs from that specific plan until you retire — but only if the plan allows it and you do not own more than 5% of the company.

How to Calculate Your RMD (Step by Step)

The IRS formula for RMDs is straightforward. You need two numbers:

1. Your account balance on December 31 of the prior year
2. Your life expectancy factor from IRS Publication 590-B, Appendix B — the Uniform Lifetime Table

RMD = Prior Year-End Account Balance ÷ Life Expectancy Factor

Most IRA owners use the Uniform Lifetime Table. There is an exception: if your sole beneficiary is a spouse more than 10 years younger than you, you may use the Joint Life and Last Survivor Expectancy Table, which produces lower RMD amounts (letting more money stay in the account longer).

Sample RMD Calculation

Notice the RMD grows as you age — because your life expectancy factor shrinks each year. At age 73, the IRS expects you to live another 26.5 years on average. By 90, that drops to 12.2 years, so a larger percentage of your account must come out annually.

IRS Uniform Lifetime Table (Ages 72–90 Excerpt)

The IRS updated the Uniform Lifetime Table in 2022 (effective for RMDs beginning in 2022). The updated table reflects longer life expectancy, meaning lower RMDs compared to the old table. These factors apply to most IRA owners.

Source: IRS Publication 590-B (2025), Table III — Uniform Lifetime. The full table extends to age 120.

SECURE 2.0 Act: Key RMD Changes

The SECURE 2.0 Act, signed into law in December 2022, made the most significant RMD reforms in decades. Here is what changed and when:

1. RMD age raised from 72 to 73 — effective for individuals who turn 72 after December 31, 2022 (i.e., born in 1951 or later). If you turned 72 in 2022 or earlier, your RMD rules were unaffected.
2. RMD age will rise again to 75 — starting January 1, 2033, for individuals born in 1960 or later.
3. Penalty reduced from 50% to 25% — the excise tax on missed RMDs dropped significantly, effective for tax years beginning in 2023. Further reduced to 10% if corrected within two years.
4. Roth 401(k) RMDs eliminated — starting January 1, 2024, Roth 401(k) accounts are no longer subject to RMDs during the owner’s lifetime, aligning them with Roth IRAs.
5. Surviving spouse rules simplified — a surviving spouse who inherits a retirement account may now elect to be treated as the deceased spouse for RMD purposes, allowing them to delay distributions based on the deceased’s age.

RMD Rules for Inherited IRAs

The rules for inherited IRAs changed dramatically under the original SECURE Act (2019) and continue to evolve. The key distinction is whether you inherited from a spouse or a non-spouse.

Spouse Beneficiaries

A surviving spouse has the most flexibility. They can roll the inherited IRA into their own IRA and treat it as their own — delaying RMDs until they reach age 73. Alternatively, they can remain a beneficiary of the inherited IRA and take RMDs based on the deceased’s age schedule.

Non-Spouse Beneficiaries (Post-SECURE Act)

Most non-spouse beneficiaries (adult children, siblings, etc.) who inherited after January 1, 2020, must withdraw the entire account within 10 yearsof the original owner’s death. There is no annual RMD requirement during those 10 years if the original owner had not yet started taking RMDs — but the account must be fully distributed by year 10. If the original owner had already begun RMDs, beneficiaries must also take annual distributions during the 10-year period.

5 Strategies to Manage Your RMD Tax Impact

RMDs are taxed as ordinary income, which can push you into a higher bracket, increase Medicare premiums (IRMAA surcharges), or trigger taxation of Social Security benefits. These strategies can help:

1. Roth conversions before age 73. Convert traditional IRA funds to a Roth IRA during lower-income years (often the gap between retirement and age 73). You pay taxes now at a potentially lower rate, and future growth and withdrawals are tax-free — with no RMDs ever.
2. Qualified Charitable Distributions (QCDs). If you are age 70½ or older, you can transfer up to $105,000 per year (2026 limit) directly from your IRA to a qualified charity. The QCD counts toward your RMD but is excluded from taxable income — the most tax-efficient way to give to charity in retirement.
3. Take RMDs early in the year. Withdrawing early in the year gives the remaining balance less time to grow (which reduces next year’s RMD slightly), and some people prefer managing cash flow throughout the year rather than scrambling in December.
4. Aggregate multiple IRAs. If you own multiple traditional IRAs, you must calculate RMDs separately for each, but you may take the total combined RMD from any one or combination of your IRAs. You cannot aggregate 401(k) plans — each must be satisfied separately.
5. Reinvest after-tax proceeds. RMD funds you do not need for living expenses can be invested in a taxable brokerage account. Long-term capital gains rates (0%, 15%, or 20%) are generally lower than ordinary income rates on future growth, providing some continued tax efficiency.

Frequently Asked Questions

When do I have to take my first RMD?

Under the SECURE 2.0 Act, you must begin taking RMDs by April 1 of the year following the year you turn 73. For example, if you turn 73 in 2026, your first RMD deadline is April 1, 2027. However, delaying your first RMD means you will have to take twoRMDs in 2027 — one for 2026 and one for 2027 — which could push you into a higher tax bracket. Many tax advisors recommend taking the first RMD in the year you turn 73 to spread the income.

How is my RMD calculated?

Divide your account balance as of December 31 of the prior year by the IRS life expectancy factor from the Uniform Lifetime Table (IRS Publication 590-B). For a 75-year-old with a $500,000 IRA balance, the 2026 RMD is $500,000 ÷ 24.6 = $20,325. You must calculate RMDs separately for each IRA, though you may aggregate and take the total from any one account. Our RMD Calculator does this math automatically.

Do Roth IRAs have RMDs?

No. Roth IRAs have no required minimum distributions during the owner’s lifetime. This is one of the most powerful tax advantages of Roth accounts — the money can continue growing tax-free indefinitely. Roth 401(k)s also no longer have RMDs starting in 2024 under SECURE 2.0. If you have a Roth 401(k), consider rolling it to a Roth IRA before age 73 to ensure no RMD complications.

What happens if I miss my RMD?

You owe a 25% excise tax on the amount you should have withdrawn but did not. If your RMD was $20,000 and you missed it, the penalty is $5,000. Under SECURE 2.0, this drops to 10% if you take the missed RMD within a two-year “correction window.” You must report the penalty on IRS Form 5329. The IRS can also waive penalties for reasonable cause, but this requires documentation and is not guaranteed.

Can I take more than the minimum?

Yes — always. The RMD is a floor, not a ceiling. Additional withdrawals are fully taxable as ordinary income (for traditional accounts). Taking more does not reduce future RMDs, though it does reduce your account balance, which will lower the following year’s calculated RMD slightly. If you need extra funds, extra withdrawals are fine. But if tax minimization is the goal, strategies like QCDs or Roth conversions are often more efficient than simply over-withdrawing.

Can I donate my RMD to charity to avoid taxes?

Yes — this is the Qualified Charitable Distribution (QCD) strategy. IRA owners age 70½ or older can transfer up to $105,000 per year (2026 limit, indexed to inflation) directly from an IRA to a qualified charity. The distribution counts toward your RMD and is excluded from taxable income entirely. This is more tax-efficient than withdrawing and then donating, especially for those who take the standard deduction and would not otherwise get a charitable deduction. The transfer must go directly from the IRA custodian to the charity — you cannot receive the funds first.