Which accounts are affected
Traditional IRAs, SEP and SIMPLE IRAs, 401(k), 403(b) and 457(b) plans are all subject to RMDs. Roth IRAs are not during the owner's lifetime, and since 2024 Roth 401(k)s are exempt too. Inherited accounts follow entirely separate rules — usually a 10-year drawdown for most non-spouse beneficiaries.
Aggregation rules people get wrong
Multiple traditional IRAs: calculate the RMD for each, then take the total from any one or any combination. Multiple 401(k)s: no aggregation — each plan's RMD must come out of that plan. Mixing those two rules is one of the most common and most expensive RMD errors.
Qualified charitable distributions
From 70½ you can send up to an indexed annual limit directly from an IRA to a qualifying charity. It counts toward the RMD but never appears in adjusted gross income — which can also keep you under Medicare IRMAA thresholds and reduce the taxable share of Social Security. It is the single most tax-efficient way to satisfy an RMD you do not need to spend.
The Roth conversion window
Between retirement and 73, taxable income is often at its lowest. Converting traditional balances to Roth in those years, filling up the lower brackets deliberately, shrinks every future RMD and the tax attached to it. The calculator's five-year projection shows how quickly the requirement grows if you do nothing.
FAQ
How do I calculate my RMD?
Divide your account balance as of 31 December last year by the IRS Uniform Lifetime Table distribution period for the age you turn this year. At 75 the period is 24.6, so an $850,000 balance produces an RMD of about $34,553.
At what age do RMDs start?
Age 73 under current rules, rising to 75 for those born in 1960 or later. Your first RMD can be delayed to 1 April of the following year, but that stacks two distributions into one tax year.
What is the penalty for missing an RMD?
25% of the amount not taken, reduced to 10% if you correct it promptly and file Form 5329. This is far lower than the 50% penalty that applied before SECURE 2.0, but still severe.
Can I reinvest my RMD?
Yes — you must take it out of the retirement account and pay the tax, but nothing stops you moving the after-tax proceeds into a taxable brokerage account. You simply cannot roll it back into an IRA.
How this calculator is built
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Written by Sam Doshi and the RevenueLab editorial team. We don't sell the data feeds this tool is built on.
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