What is a required minimum distribution?
A required minimum distribution (RMD) is the smallest amount you must withdraw each year from traditional IRAs and most workplace plans such as 401(k)s once you reach a certain age. RMDs make sure tax-deferred savings are eventually taxed.
How the RMD is calculated
Divide your account balance on December 31 of last year by the distribution period from the IRS Uniform Lifetime Table for your age this year. At age 75 the period is 24.6, so a $500,000 balance needs a withdrawal of about $20,325. The percentage rises as you get older. The calculator also estimates the next 10 years using your expected return.
- Starting age – 73 if you were born from 1951 to 1959, and 75 if you were born in 1960 or later.
- Deadline – December 31 each year. Your first RMD can wait until April 1 of the next year, but then you take two RMDs that year.
- Spouse rule – if your spouse is your only beneficiary and more than 10 years younger, you use the Joint Life Table, which gives a smaller RMD.
Frequently asked questions
What happens if I miss an RMD?
The IRS can charge a 25% excise tax on the amount you should have withdrawn, reduced to 10% if you correct it within two years. File Form 5329 and you can ask for a waiver for reasonable errors.
Do Roth accounts have RMDs?
Roth IRAs have no RMDs for the original owner, and since 2024 neither do Roth 401(k) accounts. Beneficiaries who inherit them generally do.
Can I give my RMD to charity?
Yes. From age 70½ you can make a qualified charitable distribution (QCD) directly from an IRA to a charity. It counts toward your RMD and is not added to your taxable income.