Quick answer: At age 75 with $500,000 in the account on 31 December last year, the RMD is $500,000 ÷ 24.6 = $20,325.20.
How it's calculated
RMD = the account balance at the end of last year ÷ the divisor for your age at the end of this year from the IRS Uniform Lifetime Table (Publication 590-B, Table III). The divisor falls each year, so the share you must take rises: about 3.8% at 73, 5.0% at 80 and 8.2% at 90.
RMDs start at 73 for people born from 1951 to 1959 and at 75 for those born in 1960 or later. The first RMD can be delayed to 1 April of the next year, but then two are due that year. Missing an RMD costs a 25% excise tax (10% if corrected quickly).
Each IRA's RMD can be taken from any of your IRAs; 401(k) RMDs must come from each plan. Roth IRAs have no RMDs for the original owner. To plan the savings before this stage, see the US traditional IRA calculator.
Worked examples
- Age 75, $500,000: 500,000 ÷ 24.6 = 20,325.20
- Age 73, $300,000: 300,000 ÷ 26.5 = 11,320.75
Uniform Lifetime Table (selected ages)
| Age | Divisor |
|---|---|
| 73 | 26.5 |
| 75 | 24.6 |
| 80 | 20.2 |
| 85 | 16.0 |
| 90 | 12.2 |
| 95 | 8.9 |
| 100 | 6.4 |
Frequently asked questions
Which balance do I use?
The fair market value on 31 December of the previous year, shown on your year-end statement.
Can I take more than the RMD?
Yes. The RMD is a minimum; extra withdrawals do not count towards future years.
Is the RMD taxed?
Yes, as ordinary income (except any non-deductible basis). A qualified charitable distribution from an IRA can satisfy it tax-free.
At what age do RMDs start?
Currently at 73 for people born from 1951 to 1959, and at 75 for those born in 1960 or later.
What if I miss an RMD?
The IRS can charge an excise tax of 25% of the amount not taken, reduced to 10% if you correct it in time.
Do Roth IRAs have RMDs?
Not for the original owner. Traditional IRAs do, and most workplace plans too.