Schwab RMD Calculator
Estimate your Required Minimum Distribution based on IRS Uniform Lifetime Table.
Your Estimated Results
Estimated RMD Amount:
IRS Distribution Period:
*This calculation uses the 2024 IRS Uniform Lifetime Table for participants whose spouses are not more than 10 years younger.
What is a Schwab RMD?
A Required Minimum Distribution (RMD) is the minimum amount the IRS requires you to withdraw from your retirement accounts each year once you reach a certain age. For those holding accounts at Charles Schwab or other brokerages, failing to take these distributions can result in significant tax penalties—up to 25% of the amount not withdrawn (though this can be reduced to 10% if corrected promptly).
RMD Age Rules
Under the SECURE Act 2.0, the age at which you must begin taking RMDs has increased. If you reached age 72 after December 31, 2022, your required beginning age is 73. If you reach age 74 after December 31, 2032, the age will increase to 75.
How is the RMD Calculated?
The math behind the Schwab RMD is straightforward but requires the correct IRS data. The formula is:
Annual RMD = (Account Balance as of Dec 31 of Prev. Year) / (IRS Life Expectancy Factor)
The "Life Expectancy Factor" or "Distribution Period" is taken from the IRS Uniform Lifetime Table. As you get older, the factor decreases, meaning the percentage of the account you are required to withdraw increases.
Example Calculation
Suppose you are 75 years old and your total traditional IRA balance at Schwab was $400,000 on December 31st of last year. According to the IRS Uniform Lifetime Table, the factor for age 75 is 24.6.
- Balance: $400,000
- Factor: 24.6
- Calculation: $400,000 / 24.6 = $16,260.16
In this scenario, your RMD for the year would be $16,260.16.
Important Considerations for Schwab Clients
While this calculator provides a reliable estimate, Schwab clients should remember that RMDs apply to Traditional IRAs, SEP IRAs, and SIMPLE IRAs. Roth IRAs do not require RMDs during the original owner's lifetime. If you have multiple Traditional IRAs, you can calculate the total RMD and take it from just one of them or spread it across all of them.