RMD Calculator

RMDs are mandatory annual withdrawals from tax-deferred retirement accounts (Traditional IRA, 401k, 403b) starting at age 73 (as of 2023). They ensure you pay taxes on money that grew tax-deferred. Roth IRAs don't require RMDs during owner's lifetime.

RMD = Account Balance (Dec 31 prior year) ÷ Distribution Period (from IRS life expectancy table). At 73, the factor is 26.5, so RMD is ~3.8% of balance. The percentage increases each year as life expectancy decreases.

First RMD is due by April 1 of the year after you turn 73. Subsequent RMDs are due by December 31 each year. If you delay first RMD to April, you'll have two RMDs that year (potentially higher taxes). Most take first RMD in the year they turn 73.

The penalty was reduced to 25% of the missed RMD (from 50%) as of 2023. If corrected within 2 years, penalty drops to 10%. File Form 5329 to report and pay penalty. IRS may waive penalty for reasonable cause with proper documentation.

Yes, you can always withdraw more than the RMD. However, excess withdrawals don't reduce future RMDs and are fully taxable. Consider tax bracket management - it may be beneficial to withdraw more in lower-income years to reduce future RMDs.