How to Use This Calculator
- 1
Enter IRA Balance ($)
Input the current total balance of your Traditional IRA account as of December 31 of the prior year.
- 2
Specify Your Age (years)
Enter your current age. Required Minimum Distributions (RMDs) typically begin at age 73 under the SECURE 2.0 Act.
- 3
Input Expected Growth Rate (%)
Provide the anticipated annual rate of return on your remaining IRA investments.
- 4
Set Federal Tax Rate (%)
Enter your marginal federal income tax rate, as RMDs are taxed as ordinary income.
- 5
Review Your Distribution Details
The calculator displays your Required Minimum Distribution, After-Tax Distribution, Estimated Tax on RMD, Life Expectancy Factor, and 10-Year Total RMDs. The RMD Insights panel shows your distribution as a percentage of balance and 10-year impact. A chart and table project your balance and RMDs over the next 10 years.
Example Calculation
An individual aged 73 with a Traditional IRA balance of $500,000 and an expected 5% annual growth rate needs to calculate their RMD, assuming a 22% federal tax rate.
IRA Balance ($)
500,000
Your Age (years)
73
Expected Growth Rate (%)
5
Federal Tax Rate (%)
22
Results
Required Minimum Distribution
$18,867.92
After-Tax Distribution
$14,716.98
Estimated Tax on RMD
$4,150.94
Life Expectancy Factor
26.5
10-Year Total RMDs
$232,186.49
Tips
Take Your RMD by December 31
The IRS imposes a 25% penalty on the amount not withdrawn by the deadline. For your first RMD year, you can delay until April 1 of the following year, but you will then need to take two RMDs in one tax year.
Consider Qualified Charitable Distributions (QCDs)
If you are 70½ or older, you can donate up to $105,000 directly from your IRA to a qualified charity. The QCD counts toward your RMD and is excluded from taxable income — effectively making the distribution tax-free.
Manage Your Tax Bracket
Your $18,868 RMD is added to your other income. If it pushes you near a bracket boundary, consider taking slightly more than the minimum early in the year to manage cash flow and tax timing.
Calculating Your 2026 IRA Required Minimum Distribution
The IRA Distribution Calculator helps retirement account holders determine their Required Minimum Distribution (RMD) using the IRS Uniform Lifetime Table.
This tool provides an essential financial snapshot, outlining the exact amount you must withdraw from your Traditional IRA, the estimated tax impact, and your net after-tax income.
Under the SECURE 2.0 Act, RMDs generally begin at age 73, and failing to take them can result in a 25% penalty on the amount not withdrawn.
How the IRS Uniform Lifetime Table Dictates RMDs
The calculation of your Required Minimum Distribution (RMD) is governed by the IRS Uniform Lifetime Table.
This table provides a "life expectancy factor" based on your age.
The RMD is calculated by dividing your IRA balance (as of December 31 of the previous year) by this factor.
The core formulas are:
Required Minimum Distribution (RMD) = IRA Balance / Life Expectancy Factor
After-Tax Distribution = RMD × (1 - Federal Tax Rate / 100)
Monthly Income = After-Tax Distribution / 12
For a 73-year-old, the life expectancy factor is 26.5.
With a $500,000 IRA balance, the RMD is $500,000 / 26.5 = $18,867.92.
Projecting RMDs for a 73-Year-Old IRA Holder
Let's consider an individual aged 73 with a Traditional IRA balance of $500,000.
They anticipate an average annual growth rate of 5% on their remaining investments and expect a 22% federal marginal tax rate on their RMDs.
- IRA Balance: $500,000
- Your Age: 73
- Expected Growth Rate: 5%
- Federal Tax Rate: 22%
Calculations (using IRS Life Expectancy Factor for age 73 = 26.5):
- Required Minimum Distribution (RMD): $500,000 / 26.5 = $18,867.92
- Estimated Tax on RMD: $18,867.92 × 0.22 = $4,150.94
- After-Tax RMD: $18,867.92 - $4,150.94 = $14,716.98
- Monthly Income: $14,716.98 / 12 = $1,226.42
This individual's RMD for the year is $18,867.92, resulting in an after-tax income of $14,716.98, or about $1,226 per month.
The 10-year projection shows how the balance and RMDs evolve as the life expectancy factor decreases with age.
Understanding 2026 RMD Rules and Retirement Income
For 2026, the IRS Required Minimum Distribution (RMD) rules remain a critical component of retirement planning.
Under the SECURE 2.0 Act, the age at which RMDs begin is 73.
The RMD amount is calculated annually by dividing the account balance (as of December 31 of the prior year) by a life expectancy factor from the IRS Uniform Lifetime Table.
RMDs are taxed as ordinary income, meaning they can significantly impact an individual's taxable income in retirement. Failure to take the full RMD by the deadline incurs a 25% excise tax on the amount not withdrawn. For a $500,000 IRA with a $18,868 RMD, missing the deadline could cost $4,717 in penalties alone.
IRS Regulations Governing Required Minimum Distributions
Required Minimum Distributions (RMDs) are mandated by the IRS to ensure that tax-deferred retirement accounts are eventually taxed.
The primary regulations are found in IRS Publication 590-B, "Distributions from Individual Retirement Arrangements (IRAs)."
The SECURE Act of 2019 raised the starting age from 70½ to 72, and the SECURE 2.0 Act of 2022 further raised it to 73 (effective January 1, 2023). These acts also introduced the 10-year rule for most non-spouse beneficiaries. The penalty for failing to take a full RMD was reduced from 50% to 25%, and can be further reduced to 10% if corrected within two years.
Frequently Asked Questions
What is a Required Minimum Distribution (RMD)?
A Required Minimum Distribution (RMD) is the minimum amount that retirement account owners must withdraw from their accounts annually starting at age 73 under the SECURE 2.0 Act. It applies to Traditional, SEP, and SIMPLE IRAs, as well as most 401(k) plans. The amount is calculated by dividing your prior year-end balance by an IRS life expectancy factor.
What is the IRS Uniform Lifetime Table?
The IRS Uniform Lifetime Table provides a life expectancy factor based on your age. For age 73, the factor is 26.5, meaning your RMD is your balance divided by 26.5 (about 3.8% of the account). The factor decreases each year as you age, so RMDs become a larger percentage of your balance over time.
What happens if I don't take my RMD?
Failing to take your full RMD by the deadline results in a 25% excise tax on the amount not withdrawn. This penalty can be reduced to 10% if you correct the shortfall within two years. For a $500,000 account with a $18,868 RMD, missing the deadline could cost $4,717 in penalties.
Are RMDs taxable income?
Yes, RMDs from Traditional IRAs are taxed as ordinary income. A $18,868 RMD at a 22% marginal rate results in $4,151 in federal taxes. Roth IRAs do not require RMDs during the owner's lifetime, which is one reason some people convert to Roth before reaching RMD age.
How does growth rate affect my long-term balance?
At 5% growth, a $500,000 IRA still has a substantial balance after 10 years of RMDs because growth partially offsets withdrawals. At 0% growth, the balance depletes much faster. Use the 10-year projection chart to see how different growth assumptions affect your account trajectory.