Using the RMD Calculator 2025
The rmd calculator 2025 is designed to help retirees and IRA beneficiaries determine their Required Minimum Distributions for the 2025 tax year. Under the SECURE Act 2.0, the age at which individuals must begin taking distributions has shifted, making it critical to use updated 2025 calculations to avoid the 25% (or 10% if corrected) excise tax penalty for missed distributions.
To use this tool, simply input your prior year-end balance and your age as of December 31, 2025. The calculator applies the updated IRS Uniform Lifetime Table factors to provide your exact required withdrawal amount.
- Account Balance (Dec 31, 2024)
- This is the total fair market value of your retirement account (IRA, 401k, 403b) on the last day of the previous calendar year.
- Age on Dec 31, 2025
- The IRS uses your age at the end of the current tax year to determine the life expectancy factor. For 2025, the starting age for most individuals is 73.
- Table Type
- The "Uniform Lifetime Table" is used by almost everyone. The "Joint Life Expectancy" table is only used if your sole beneficiary is a spouse who is more than 10 years younger than you.
How the RMD is Calculated
The IRS requires you to divide your total retirement account balance by a "distribution period" or "life expectancy factor." These factors are updated periodically by the IRS to reflect modern life expectancies. The basic formula is:
RMD = (Account Balance as of Dec 31, Prior Year) / (Life Expectancy Factor)
- Balance: The sum of all qualifying accounts (Note: Roth IRAs do not have RMDs for the original owner).
- Factor: Found in IRS Publication 590-B. For a 75-year-old in 2025, the factor is 24.6.
- Deadline: Generally December 31 each year, though your first RMD can be delayed until April 1 of the following year.
2025 Calculation Example
Scenario: Sarah is 74 years old on December 31, 2025. Her traditional IRA balance on December 31, 2024, was $450,000. She wants to know her required withdrawal for 2025.
Step-by-step solution:
- Account Balance = $450,000
- Age in 2025 = 74
- IRS Factor for age 74 (Uniform Table) = 25.5
- Calculation: $450,000 / 25.5
- Result = $17,647.06
Common Questions
What is the RMD age for 2025?
For the 2025 tax year, the RMD age is 73. If you were born between 1951 and 1959, you must begin taking distributions starting at age 73. Those born in 1960 or later will see the age increase to 75 in future years.
What happens if I don't take my RMD?
Failing to take an RMD results in a significant penalty. Prior to the SECURE Act 2.0, the penalty was 50%. As of 2025, the penalty is 25% of the amount not withdrawn. If the error is corrected in a timely manner (within a "correction window"), the penalty may be reduced to 10%.
Do Roth IRAs have RMDs in 2025?
No. Original owners of Roth IRAs are not required to take distributions during their lifetime. However, if you have a Roth 401(k), the rules changed in 2024 to align with Roth IRAs, meaning RMDs are no longer required from designated Roth accounts in employer plans for the original participant.
Can I take more than the RMD?
Yes, the RMD is only the minimum. You can always withdraw more than the calculated amount. However, keep in mind that distributions from traditional IRAs and 401(k)s are generally taxed as ordinary income, so larger withdrawals may push you into a higher tax bracket.