RMD Rates by Age Calculator
Your RMD Summary
Understanding Required Minimum Distributions (RMDs)
A Required Minimum Distribution (RMD) is the minimum amount you must withdraw from your retirement accounts each year once you reach a certain age. These rules apply to traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k) plans, 403(b) plans, and 457(b) plans. Failing to take your RMD can result in significant IRS penalties.
As of the SECURE 2.0 Act, the age to begin taking RMDs has increased to 73. If you reached age 72 in 2022 or earlier, you are already required to take distributions. If you reach age 73 in 2023 or later, your first RMD is required for the year you turn 73.
How RMDs Are Calculated
The calculation for an RMD is relatively straightforward but relies on specific life expectancy tables provided by the IRS. Most taxpayers use the Uniform Lifetime Table. The formula is:
RMD = (Account Balance as of Dec 31 previous year) / (IRS Distribution Period Factor)
RMD Rates and Factors by Age
The IRS "factor" represents your remaining life expectancy. As you get older, the factor decreases, which means your required withdrawal percentage increases. Here is a sample of factors from the 2024 Uniform Lifetime Table:
| Age | Distribution Factor | Approx. Rate (%) |
|---|---|---|
| 73 | 26.5 | 3.77% |
| 75 | 24.6 | 4.07% |
| 80 | 20.2 | 4.95% |
| 85 | 16.0 | 6.25% |
| 90 | 12.2 | 8.20% |
Real-World Example
Let's say John turns 75 this year. His IRA balance on December 31st of last year was $400,000. According to the IRS Uniform Lifetime Table, the factor for age 75 is 24.6.
- Step 1: Identify the balance ($400,000).
- Step 2: Identify the factor for age 75 (24.6).
- Step 3: Divide balance by factor: $400,000 / 24.6 = $16,260.16.
John must withdraw at least $16,260.16 by December 31st to avoid penalties. Note that the penalty for failing to take an RMD is now 25% of the amount not taken (potentially reduced to 10% if corrected quickly).