How Much Must You Withdraw From Retirement Accounts?

The RMD Formula Explained

Required Minimum Distributions (RMDs) are calculated using a simple formula: your account balance on December 31 of the prior year divided by your IRS life expectancy factor from the Uniform Lifetime Table. At age 73, the factor is 26.5. A $500,000 IRA balance on December 31 generates an RMD of $18,868. At 80, the factor drops to 20.2, and the same balance generates $24,752 — RMDs grow as your life expectancy factor decreases.

What makes RMDs complex is the tax cascade. Every RMD dollar is ordinary income. A retiree with $30,000 in Social Security and a $25,000 RMD has $55,000 in taxable income — which may push them from the 12% to 22% bracket, make more of their Social Security taxable, and trigger Medicare IRMAA surcharges if their Modified Adjusted Gross Income (MAGI) exceeds $103,000 for a single filer.

SECURE 2.0 (December 2022) raised the RMD starting age from 72 to 73, and will raise it again to 75 for those born after December 31, 1959. This gives pre-retirees additional runway for Roth conversions — converting traditional IRA money to Roth before RMDs begin, paying tax now at potentially lower rates, and eliminating future mandatory taxable distributions.

RMDs apply to traditional IRAs, 401(k)s, 403(b)s, 457(b)s, and most other tax-deferred accounts. Roth IRAs are exempt during the owner's lifetime. Roth 401(k)s were also exempted from RMDs beginning in 2024.

Calculate Your RMD Amount

Enter your prior year-end balance and age to see your exact RMD, tax impact, and 10-year withdrawal schedule.

Calculate My RMD

How to Manage Your RMDs Tax-Efficiently

1
Calculate your RMD accurately each year
Use your December 31 balance from the prior year — not the current balance. If you have multiple traditional IRAs, calculate the RMD for each separately, then take the total from any one IRA (or combination). 401(k) RMDs must be taken separately from each 401(k). The IRS Uniform Lifetime Table provides life expectancy factors — use the table that matches your beneficiary situation.
2
Consider Qualified Charitable Distributions (QCDs)
If you're 70½ or older, you can transfer up to $105,000 (2024, indexed) directly from a traditional IRA to a qualified charity. The QCD counts toward your RMD but is excluded from taxable income. For charitably-inclined retirees who don't need the full RMD income, this is one of the most powerful tax strategies available — eliminating tax on withdrawn amounts while satisfying the requirement.
3
Evaluate Roth conversions before RMDs begin
The period between retirement (when earned income stops) and RMD age (73) is often a low-income window — an opportunity to convert traditional IRA money to Roth at lower tax rates. Each dollar converted pre-RMD reduces the balance subject to future mandatory distributions. Roth accounts grow tax-free and have no RMDs during the owner's lifetime, making them ideal for wealth transfer.
4
Watch for Medicare IRMAA thresholds
Medicare Part B and D premiums use income from 2 years prior to set surcharges (IRMAA). If your Modified Adjusted Gross Income (MAGI) exceeds $103,000 (single) or $206,000 (married filing jointly), you pay surcharges of $70–$420+/month above standard premiums. Large RMDs can push you over these thresholds unexpectedly. Plan RMDs and other income with an eye on IRMAA brackets.
5
Aggregate RMD requirements correctly
If you have multiple traditional IRAs, you can aggregate them and take the total RMD from any one account. This can be strategic — take from the account with the worst investment options, or an account you want to deplete. 401(k)s and 403(b)s cannot be aggregated — each requires a separate RMD taken from that specific account. Inherited IRAs are calculated separately and have their own rules.

RMD Questions

What if I took more than my RMD last year?

Excess withdrawals above the RMD do not carry forward to satisfy future years' requirements. Each year's RMD is calculated independently based on that year's starting balance. Taking more than required in one year is fine — it reduces your balance (and thus future RMDs), but you must still take the full RMD for each subsequent year. You cannot 'bank' extra withdrawals.

How are inherited IRA RMDs calculated?

Non-spouse beneficiaries who inherited after December 31, 2019 (post-SECURE Act) must empty the account within 10 years. Whether annual distributions are required within those 10 years depends on when the original owner died — if they died before their required beginning date, no annual distributions are required; if after, annual distributions are required. Spouses have more flexible options. Inherited IRA rules are complex — consult a tax advisor.

Can I reinvest my RMD back into other accounts?

You cannot roll your RMD back into a tax-deferred account — RMDs are not eligible for IRA rollover. However, you can invest RMD proceeds in a taxable brokerage account, a Roth IRA if you have earned income and meet income limits, a savings account, or anywhere else after paying the tax. You can also use RMD proceeds to fund a Qualified Charitable Distribution before receiving the distribution.

Calculate Your Required Withdrawal Amount

See your exact RMD, estimated tax impact, and 10-year projection — plus whether you're at risk for Medicare IRMAA surcharges.