Retirement / RMD

Required minimum distributions

Once the applicable age arrives, the IRS requires a minimum withdrawal every year whether or not you need the money — and the percentage rises for the rest of your life. This projects the balance to the first distribution, applies the Uniform Lifetime Table year by year, and prices the tax and the penalty for getting it wrong.

Applicable age73Withdrawal rate3.77%Missed-year penalty$10,836

First required distribution

$43,345

at age 73, divisor 26.5

Years until it starts

applicable age 73 for a 1958 birth year

Distributed over 20 years

$1,312,893

$315,094 at the 24% marginal rate

Balance at 92

$903,114

79% of the starting balance

Required distributions, year by year

Each year divides the prior 31 December balance by that year’s Uniform Lifetime divisor.

20 years

Required distributions, year by year
Age	Divisor	Distribution	Tax	Balance left
73	26.5	$43,345	$10,403	$1,160,573
74	25.5	$45,513	$10,923	$1,170,814
75	24.6	$47,594	$11,423	$1,179,381
76	23.7	$49,763	$11,943	$1,186,099
77	22.9	$51,795	$12,431	$1,191,019
78	22.0	$54,137	$12,993	$1,193,726
79	21.1	$56,575	$13,578	$1,194,009
80	20.2	$59,109	$14,186	$1,191,645
81	19.4	$61,425	$14,742	$1,186,731
82	18.5	$64,148	$15,395	$1,178,712
83	17.7	$66,594	$15,983	$1,167,724
84	16.8	$69,507	$16,682	$1,153,128
85	16.0	$72,070	$17,297	$1,135,110
86	15.2	$74,678	$17,923	$1,113,453
87	14.4	$77,323	$18,558	$1,087,937
88	13.7	$79,411	$19,059	$1,058,951
89	12.9	$82,089	$19,701	$1,025,705
90	12.2	$84,074	$20,178	$988,713
91	11.5	$85,975	$20,634	$947,874
92	10.8	$87,766	$21,064	$903,114

The first distribution is $43,345 against a $1,148,653 balance. A distribution taken in the first eligible year may be deferred to 1 April of the next, but that doubles the taxable amount in year two.

Distribution and remaining balance

The distribution rises as the divisor shrinks; the balance falls only if the withdrawal outruns the growth.

Annual distribution by age

The required share of the account climbs every year — this is the schedule the IRS enforces, not a suggestion.

Canonical equations

The exact relationships implemented by this engine.

RMD = B / D(age) · B is the prior 31 December balance; D is the Uniform Lifetime divisor.

72 / 73 / 75 by birth year · SECURE 2.0 §107: 72 if born 1950 or earlier, 73 for 1951–1959, 75 from 1960.

B_start = B₀ (1 + g)^k · k is the number of years between now and the first distribution.

penalty = 25% × missed · 10% if corrected within the two-year window.

Show model notation and computationOpen the symbolic form, the variable definitions, and the step-by-step derivation when you need the detail.

A clear path from inputs to results.

Once you reach the applicable age, the IRS requires a minimum withdrawal from a traditional retirement account every year, whether or not you need the money. The percentage rises for the rest of your life because the divisor shrinks. This projects the balance to the first distribution and applies the Uniform Lifetime Table year by year.

Step-by-step methodWorked exampleAssumptions explained

How to use

Enter your current age and birth year — the birth year sets the applicable age under SECURE 2.0.

Enter the account balance as it stands at the end of the prior year.

Set the return you expect on whatever stays invested.

Choose how many years to project and your marginal tax rate.

Read the first distribution, the total distributed, and the balance that survives.

The formula

\mathrm{RMD}_t = \frac{B_{t-1}}{D(\mathrm{age}_t)} \;;\; B_{t} = \left(B_{t-1} - \mathrm{RMD}_t\right)(1+g)

Reference: IRC §401(a)(9) and Treas. Reg. §1.401(a)(9)-9, Uniform Lifetime Table; applicable age from SECURE 2.0 §107.

Worked example

Born 1958, $900,000 today, five years to the first distribution

Inputs

Current age 68, birth year 1958.
Balance $900,000, growing at 5% a year.
Marginal tax rate 24%, twenty-year projection.

Calculation path

1
A 1958 birth year gives an applicable age of 73, so the first distribution is in five years.
2
The balance grows to $900,000 × 1.05⁵ = $1,148,653 by then.
3
The Uniform Lifetime divisor at 73 is 26.5, so the first RMD is $1,148,653 / 26.5 = $43,345.
4
At 74 the divisor falls to 25.5 and the balance is $1,148,653 − $43,345, grown by 5%: $1,160,573.
5
That gives a second distribution of $45,513 — already 5% higher than the first.
6
Over twenty years the distributions total $1,312,893 and the account still holds $903,114.

Result

$43,345 in the first year, $1,312,893 distributed over twenty years, $903,114 left.

Interpreting the result

The distribution rises every year even when the balance falls, because the divisor shrinks faster than the account does. That is the part people miss: this is not a percentage you can plan around at a single rate, it is a schedule that accelerates. The tax column matters more than the withdrawal column, because the distribution is ordinary income and can push you into a higher bracket or into IRMAA surcharges.

Assumptions & limitations

The Uniform Lifetime Table is used, which assumes a beneficiary exactly ten years younger — the conservative case when no designated beneficiary is named.

The balance is the prior 31 December value, which is the statutory base; it is not the balance on the day you take the distribution.

Growth is a single nominal rate applied after the distribution leaves the account.

The applicable age follows SECURE 2.0: 72 for a 1950 or earlier birth year, 73 for 1951–1959, 75 for 1960 and later.

Roth IRA balances are excluded, and Roth 401(k) balances have been exempt from lifetime RMDs since 2024.

The still-working exception, which can defer the first distribution for a current employer plan, is not modelled.

Frequently asked questions

What age do RMDs start?

It depends on your birth year. If you were born in 1950 or earlier the age is 72. From 1951 to 1959 it is 73. From 1960 onwards it is 75. The rule changed under SECURE 2.0, so older guidance quoting 70½ is out of date.

Can I take more than the minimum?

Yes, and many people should. Taking more early reduces later distributions and may be cheaper if you expect higher tax rates later, but it also removes money from a tax-sheltered account. The minimum is a floor, not a target.

Do I have to take the RMD from every account?

No. The total is calculated per account, but it can be taken from any one or any combination of traditional IRAs. Employer plans such as a 401(k) must each be satisfied separately, which is a common and expensive mistake.

What happens if I miss a distribution?

The IRS charges a 25% excise tax on the amount you should have taken, reduced to 10% if you correct the shortfall within the correction window and file the right form. On a $43,345 distribution that is $10,836, which is why the deadline is worth a calendar reminder.

Does a Roth conversion help?

It can, because converting reduces the balance that future RMDs are calculated on. The trade is paying tax now at your current rate against paying it later on a larger balance. Converting in the years between retirement and the first RMD is usually the cheapest window.

Can I give the distribution to charity?

Yes, through a qualified charitable distribution once you are 70½. Up to $108,000 in 2025 can go directly from the IRA to a charity, it counts toward the RMD, and it never appears in adjusted gross income — which is more valuable than a deduction.