Required Minimum Distribution (RMD) Calculator
Calculate your required minimum distributions (RMDs)
RMDs and The SECURE Act
Changes under the SECURE Act, which went into effect on January 1, 2020, may impact your RMD calculations and distribution requirements. Visit The SECURE Act Resource Center or consult a tax advisor to learn more.
What you need to know about RMDs
With Traditional IRAs, you are required to take annual RMDs. If you were born on or before June 30, 1949, you must begin taking RMDs at age 70 1/2. If you were born after June 30, 1949, you must begin taking RMDs at age 72.
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).
How RMDs are calculatedThe 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.
Multiple IRAsIf 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.
RMD DistributionsOnce 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.
Taxes and penaltiesGenerally, your RMDs are taxed as regular income within the year they are taken, but RMDs can also be subject to state and local taxes. If you fail to take an RMD, the IRS will impose an additional 50% penalty on your RMD amount. For example, if your RMD was $5,000 and you missed the deadline to take it, the IRS would issue a penalty of $2,500. For more detailed information on tax implications, please consult a tax advisor.