Required Minimum Distribution (RMD) Calculator

With Traditional IRAs, you are required to take annual RMDs starting at age 73 (unless you turned 72 prior to January 1, 2023, then your RMD's must begin by 72. Those who turned 70 1/2 prior to January 1, 2020 had to start RMD's at 70 1/2).

While you must take your RMD by December 31st of every year, you can delay taking your first RMD until April 1st of the year after you reach RMD age. Bear in mind, however, that this means you will be taking two RMDs that year (one by April 1st and another by December 31st).

The amount you are required to take annually is calculated using a variety of factors. It's not a set number and can vary from year to year as well as account to account.

If you have multiple IRAs, you must calculate the RMD for each one separately. Once your total RMD amount is calculated, you can choose to distribute the funds from any or all of the accounts as you see fit. In other words, you can use one IRA account to satisfy your RMDs for all of your IRAs or you can take the corresponding RMD amount out of each account. As long as the total RMD amount is satisfied, the number of accounts used does not matter.

Once the RMD is taken from your account, you don't have to spend it. While the funds cannot remain in a tax-deferred account, they can be put into a taxable account. You could even choose to do a distribution in kind and move the assets in your IRA into a taxable brokerage account.

Generally, your RMDs are taxed as regular income within the year they are taken, but RMDs can also be subject to state and local taxes. Starting in 2023, if you fail to take an RMD, the IRS may impose an additional penalty of up to 25% on your missed RMD amount (the penalty for missed RMD's before 2023 was 50%). For example, if your 2023 RMD was $10,000 and you miss the deadline to take it, the IRS may require you to pay a penalty of $2,500. For more detailed information on tax implications, please consult a tax advisor.