Required Minimum Distribution (RMD) Calculator

 The current RMD age is 73. This age reflects current IRS rules on when tax-deferred retirement savings must begin to be distributed from a Traditional IRA, SEP IRA, and SIMPLE IRA. 

 You must begin taking RMDs for the year you turn 73. Although RMDS are generally due by December 31, your first RMD can be taken no later than April 1 of the following year you turn age 73. Be aware however, if you postpone your first RMD, you will have to take another one before the end of the year.

An RMD is the minimum amount you must withdraw each year from certain retirement accounts such as your Traditional, SEP or SIMPLE IRA once you reach age 73. Failure to take a distribution the RMD will subject you to a 25% penalty based on the amount that was required to be distributed. The IRS requires these withdrawals so it can begin taxing money that has grown tax-deferred in these retirement plans.

Your RMD is calculated using a life expectancy factor based on your age and your account’s prior year’s balance. For most people, the Uniform Lifetime Table is used. But there’s an exception if your spouse is your sole beneficiary and is more than 10 years younger than you, the IRS allows you to use a joint life expectancy table, which uses your actual age and your spouse’s age, resulting in a lower RMD.