RMD (Required Minimum Distribution)
The minimum amount you must withdraw each year from traditional retirement accounts, starting at age 73.
What does rmd mean?
The IRS requires annual withdrawals — calculated from your balance and a life-expectancy factor — so tax-deferred money is eventually taxed. Missing an RMD carries a steep penalty. Roth IRAs have no RMDs for the original owner.
Put it to use
Required Minimum Distribution (RMD) Use this calculator to determine your Required Minimum Distributions (RMD) as an account owner of a retirement account. This financial calculator will also look at potential future year's distribution requirements. Beneficiary Required Minimum Distributions (RMD) Use this calculator to determine your Required Minimum Distributions (RMD) as a beneficiary of a retirement account.
Related terms
RMD — frequently asked
At what age do required minimum distributions start?
RMDs currently begin at age 73 for most retirement accounts, rising to 75 in 2033 under SECURE 2.0. Your first withdrawal can be delayed to April 1 of the year after you turn 73, but then you take two that year.
How is my RMD calculated?
Divide your account balance as of December 31 of the prior year by the IRS life-expectancy factor for your age. For example, a $500,000 balance at a factor of 26.5 gives an RMD of about $18,868 for that year.