How to use the Required Min Distribution
- Enter the account balance as of 31 December last year.
- Enter your age for the distribution year.
- Read the required distribution and the implied withdrawal percentage.
- Plan the tax by combining the distribution with your other income.
How the calculation works
The RMD is prior-year-end balance divided by the distribution period from the IRS Uniform Lifetime Table. At 73 the factor is 26.5, implying a 3.77% withdrawal; by 85 it is 16.0, or 6.25%; by 95 it is 8.9, or 11.2%. The percentage climbs every year, so RMDs increasingly drive taxable income later in retirement.
Aggregation rules differ by account type: multiple IRAs can be totalled and the whole RMD taken from one of them, while each employer 401(k) must satisfy its own. Roth IRAs have no RMD for the original owner. The penalty for shortfall is severe — 25% of the amount not taken, reduced to 10% if corrected promptly — which makes a missed deadline expensive.
RMD = prior year-end balance / IRS uniform lifetime table factor for your ageSource: IRS Uniform Lifetime Table, Publication 590-B, required minimum distribution rules.
Worked example
A traditional IRA worth 780,000 at year end, owner aged 75.
- Table factor at 75 = 24.6.
- RMD = 780,000 / 24.6 = 31,707.
- Implied withdrawal rate = 4.07%.
- At a 24% marginal rate the tax is about 7,610.
At least 31,707 must be withdrawn that year, generating roughly 7,610 of tax.
Frequently asked questions
When do RMDs start?+
Currently at age 73 for most people, rising to 75 for later birth cohorts under SECURE 2.0.
Can I take more than the RMD?+
Yes. The RMD is a floor, not a cap, and extra withdrawals do not reduce future RMDs beyond lowering the balance.
Do Roth accounts have RMDs?+
Roth IRAs do not for the original owner. Inherited accounts follow different rules.
What if I miss one?+
A 25% excise tax applies on the shortfall, cut to 10% if corrected within the correction window.
Last reviewed August 31, 2026. We review this page whenever the underlying formula, tax year, published rate or standard changes.