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Welcome to the **Required Minimum Distribution (RMD) Calculator**. This tool helps IRA and retirement plan owners estimate their mandatory annual withdrawal amount based on their previous year-end balance and current age, using the latest IRS Uniform Lifetime Table factors.
Schwab RMD Calculator
Your Estimated RMD is:
$0.00Detailed RMD Calculation Steps
Enter your values and click “Calculate RMD” to see the step-by-step process here.
schwab rmd calculator Formula
The Required Minimum Distribution (RMD) is determined by dividing your retirement account balance by a factor derived from the IRS Uniform Lifetime Table, based on your age.
Formula Sources: IRS Official Guidelines | Schwab RMD Resource
Variables Explained
- Account Balance: The fair market value of your retirement account (IRA, 401(k), etc.) as of December 31 of the previous year.
- Owner’s Age: Your age you will attain in the year the distribution is required. RMDs typically begin the year you turn 73 (due to SECURE Act 2.0).
- Distribution Period: A life expectancy factor assigned by the IRS, which decreases as you get older, ensuring the account is fully distributed over your expected lifetime.
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What is Schwab RMD Calculator?
The Schwab RMD Calculator is a tool designed to help individuals with tax-deferred retirement accounts, such as traditional IRAs, SEP IRAs, SIMPLE IRAs, and most 401(k) plans, estimate the minimum amount of money they must withdraw annually once they reach their Required Beginning Date (RBD). Schwab, as a major custodian, provides these resources to help clients comply with complex IRS regulations and avoid significant penalties (up to 25% of the undistributed amount).
The calculation is crucial for tax planning. Since RMDs are generally taxed as ordinary income, knowing the exact amount helps retirees manage their taxable income, adjust tax withholdings, and plan for potential Medicare premium surcharges. This calculator simplifies the process by referencing the current IRS life expectancy tables automatically.
How to Calculate RMD (Example)
- Determine Age and Account Value: Suppose you turn 75 this year, and your account balance on December 31 of last year was $483,000.
- Find the Distribution Period: Based on the IRS Uniform Lifetime Table, the distribution period for age 75 is 24.6.
- Apply the Formula: Divide the account balance by the distribution period. ($483,000 / 24.6).
- Calculate the RMD: The calculated RMD for the year is approximately $19,634.15. This is the minimum amount that must be withdrawn by December 31 of the current year.
Frequently Asked Questions (FAQ)
Is the RMD age still 70 1/2?
No. Under the SECURE Act 2.0, the age to begin taking RMDs has been changed. For those who turned 73 after December 31, 2022, the starting age is generally 73. It is scheduled to increase to 75 in 2033.
What is the penalty for not taking an RMD?
The penalty for failing to take a full RMD is steep: an excise tax of 25% of the amount that should have been withdrawn. If corrected promptly, this penalty may be reduced to 10%.
Does this calculator work for beneficiaries (Inherited IRAs)?
This calculator uses the Uniform Lifetime Table for standard retirement account owners. RMDs for beneficiaries (Inherited IRAs) use different tables and rules (e.g., Single Life Expectancy Table or the 10-year rule) and may require a specialized calculator.
Can I withdraw more than the RMD?
Yes, the RMD is only the *minimum* required withdrawal. You can withdraw more than the calculated RMD amount at any time, but those additional withdrawals do not count toward future RMDs.