Frequently asked questions
When do RMDs start?
As of the SECURE 2.0 Act, RMDs begin at age 73 for those born 1951-1959, and will begin at 75 for those born 1960 or later. Your first RMD can be delayed until April 1 of the year after you turn 73, but then you'll owe two RMDs that year (the delayed one plus the current year's).
Which accounts require RMDs?
Traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k)s, 403(b)s, and most employer-sponsored retirement plans. Roth IRAs do not require RMDs during the owner's lifetime. Roth 401(k)s previously required RMDs but are exempt starting in 2024.
What happens if I don't take my RMD?
The penalty for missing an RMD was reduced from 50% to 25% of the shortfall by the SECURE 2.0 Act (and 10% if corrected within 2 years). Still substantial. Set a reminder or automate distributions to avoid the penalty.
When should I use a custom life expectancy factor?
Use Table II (Joint Life and Last Survivor Expectancy) if your sole beneficiary is your spouse and they are more than 10 years younger. This gives a longer distribution period and a smaller required withdrawal. Otherwise, the standard Uniform Lifetime Table applies.
Can I withdraw more than the RMD?
Yes, the RMD is a minimum, not a maximum. Many retirees withdraw more based on their income needs. However, you cannot apply excess withdrawals to future years' RMDs. Each year's RMD is calculated independently based on the prior December 31 balance.
Is this calculator applicable outside the US?
No. RMDs are a US-specific IRS requirement. Other countries have their own rules for mandatory retirement account withdrawals. For example, Canada has minimum RRIF withdrawals, and Australia has minimum super pension drawdown rates. The percentages and ages differ.