Required Minimum Distributions (RMD)
The IRS requires that you withdraw at least a minimum amount - known as a required minimum distribution (RMD) - from some types of retirement accounts annually, starting the year you turn age 70-1/2. Determining how much you are required to withdraw is an important issue in retirement planning. Use this calculator to determine your required minimum distributions.
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Required Minimum Distributions by Year |
Definitions
Calculation notes
This calculator has been updated for 2024 to include 'SECURE 2.0' and IRS Notices from 2023. SECURE 2.0 increases the age of Required Minimum Distribution (RMD) for account owners. Secure 2.0 did not change how the RMD is calculated; it only changed the age that they start. These rules took effect January 1st, 2023.
Birthdate | Age* |
---|---|
Account owners born on or before 6/30/1949 | 70 1/2* |
7/1/1949 through 12/31/1950 | 72* |
1/1/1951 through 12/31/1959 | 73* |
Account owners born on or after 1/1/1960 | 75* |
*Age of account owner as of 12/31 of the distribution year. This RMD chart only applies to the original account owner or a spouse who chooses to treat their inherited account as their own. |
The CARES Act of 2020 provided a temporary waiver of RMDs. The RMD waiver is for retirement plans and accounts for 2020. This includes direct contribution plans such as 401k, 403b, 457b plans and IRAs. RMDs were also waived for IRA owners who turned 70 1/2 in 2019 and were required to take an RMD by April 1, 2020.
If you have RMD questions, please consult with your own tax advisor regarding your specific situation. If you are under 75 and this RMD is from a 403(b) plan, you may not be required to take distributions on the balance in your account before 1987 until you reach age 75. You may need to contact a financial planner or CPA to determine if this exception applies to your RMD.
IMPORTANT! This calculator has been updated for the Secure 2.0 (2022), SECURE Act of 2019 and the CARES Act of 2020 and IRS Notices regarding these acts from 2023. Future IRS published procedures may have an impact on enforcement and interpretation of these Acts.
Year of RMD
The year for the RMD calculation. This is usually the current year, but past and future year RMDs can be calculated by changing this value.
Owner's birthdate
The account owner's birthdate. The tool uses this to calculate the account owner's age as of December 31st of the distribution year.
Amount subject to RMD
This is the fair market value of the account as of the close of business on December 31st of the prior year. For example, to determine the RMD for 2024, use the account balance as of 12/31/2023. For traditional IRAs, no adjustments are made for contributions or distributions after that date. If you made a transfer or rollover from one account on or before December 31st of the prior year and the funds were received by a new account in the next year, you will need to increase your December 31st fair market value by the amount that was transferred or rolled over and not included in the December 31st value of either account.
Hypothetical rate of return
This is the expected rate of return on the account balance. This is only used to help project future account balances (which of course will impact required minimum distributions). The actual rate of return is largely dependent on the types of investments you select. The Standard & Poor's 500® (S&P 500®) for the 10 years ending December 31st 2023, had an annual compounded rate of return of 15.2%, including reinvestment of dividends. From January 1, 1970 to December 31st 2023, the average annual compounded rate of return for the S&P 500®, including reinvestment of dividends, was approximately 10.9% (source: www.spglobal.com). Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009). Savings accounts at a financial institution may pay as little as 0.25% or less but carry significantly lower risk of loss of principal balances.
It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that investment funds and/or investment companies may charge.
Is sole beneficiary a spouse?
Check this box if the sole beneficiary is a spouse. The IRS uniform life expectancy table is used to calculate the life expectancy for account owner RMDs. The only exception to this rule is if the sole beneficiary is a spouse and is more than 10 years younger than the account owner. In this situation, the IRS joint life expectancy table is used. The IRS joint life expectancy table normally produces lower required distributions.
Beneficiary's birthdate
If the sole beneficiary of the account is a spouse, enter the beneficiary's birthdate. If the spouse is more than 10 years younger than the account owner, the IRS joint life expectancy table is used which normally produces lower required distributions.
Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues. The S&P 500 is an unmanaged index of 500 widely held stocks. It is not possible to invest directly in an index. The performance mentioned does not include fees and charges which would reduce an investor returns. While interest on municipal bonds is generally exempt from federal income tax, it may be subject to the federal alternative minimum tax, or state or local taxes. Profits and losses on federally tax-exempt bonds may be subject to capital gains tax treatment. Fixed income risks include, but are not limited to, changes in interest rates, liquidity, credit quality, volatility, and duration.