RMD Calculator: the facts

1. Required minimum distributions begin at 73 for people born from 1951 through 1959 and at 75 for people born in 1960 or later (SECURE 2.0). Those born in 1950 or earlier are already taking them.
2. The first distribution may be delayed until April 1 of the year after the applicable age is reached. Every later one is due December 31, so delaying the first puts two distributions in one tax year.
3. The amount is the account balance on the prior December 31 divided by the Uniform Lifetime Table's period for the age reached that year: 26.5 at 73, 24.6 at 75, 20.2 at 80, 12.2 at 90.
4. On a $500,000 balance the first distribution at 73 is $18,868, 3.8% of the account. The required share rises every year: 5.0% at 80, 8.2% at 90, 15.6% at 100.
5. A distribution that is missed or short carries a 25 percent excise tax on the shortfall, reduced to 10 percent if it is corrected within two years.
6. Roth IRAs have no lifetime required distributions for the owner. The Uniform Lifetime Table applies to an owner's own account when the spouse is the sole beneficiary and not more than ten years younger, or when there is no such spouse; inherited accounts follow different rules.

Educational only, not investment, tax, or legal advice. Results are hypothetical estimates that vary with each use and over time and are not guaranteed accurate or complete. Using this tool creates no client relationship with Considerate Capital, and the site that linked here is not affiliated with it. By using it you agree to the tool terms.