1. What is Required Minimum Distribution?

Required Minimum Distribution (RMD) is the minimum amount you must withdraw annually from your retirement accounts (like 401(k)s and IRAs) starting at age 72 (or 70½ if you reached that age before January 1, 2020).

2. How Does the Calculator Work?

The calculator uses the RMD formula:

Where:

• Account Balance — Your retirement account balance as of December 31 of the previous year
• Life Expectancy Factor — From IRS Uniform Lifetime Table based on your age

Explanation: The IRS provides life expectancy tables to determine your distribution period based on your age.

3. Importance of RMD Calculation

Details: Calculating RMD accurately is crucial to avoid IRS penalties (50% of the amount that should have been withdrawn). It helps in retirement planning and tax management.

4. Using the Calculator

Tips: Enter your total retirement account balance and the life expectancy factor from IRS tables. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: When must I take my first RMD?
A: By April 1 of the year after you turn 72 (or 70½ if born before July 1, 1949). Subsequent RMDs are due by December 31 each year.

Q2: Where can I find my life expectancy factor?
A: IRS Publication 590-B provides the Uniform Lifetime Table for most account owners.

Q3: What accounts require RMDs?
A: Traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k)s, 403(b)s, and other defined contribution plans.

Q4: Can I withdraw more than the RMD?
A: Yes, you can always withdraw more than the required minimum.

Q5: Are there penalties for incorrect RMDs?
A: Yes, the IRS imposes a 50% excise tax on the amount not distributed as required.