How to Calculate Your Required Minimum Distributions (RMDs)

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Published: March 10, 2025

How to Calculate Your Required Minimum Distributions (RMDs) is essential for ensuring you withdraw the correct amounts from tax-deferred retirement accounts. Required Minimum Distributions (RMDs) are mandatory withdrawals once you reach a certain age. The IRS requires these distributions to ensure that funds are eventually taxed, and failure to withdraw the required amount may result in penalties.

In this guide, we’ll walk through how to calculate your RMD using IRS life expectancy tables and discuss important considerations when taking distributions.

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This blog is part of a series that provides a comprehensive overview of RMDs. For a complete guide covering rules, strategies, and deadlines, check out How to Follow RMD Rules and Make Withdrawals Easy.

Step 1: Determine Your RMD Age

Your RMD age depends on your birth year:

If you were born before July 1, 1949, your RMDs started at 70½.
If you were born between July 1, 1949, and December 31, 1950, your RMD age is 72.
If you were born between 1951 and 1959, your RMD age is 73.
If you were born in 1960 or later, your RMD age increases to 75 (starting in 2033).

Your first RMD must be taken by April 1 of the year after you reach your RMD age, but delaying means taking two RMDs in the same year, which could increase your taxable income.

Step 2: Find Your Account Balance

Your RMD is based on your account balance as of December 31 of the previous year. If you have multiple retirement accounts, each balance must be calculated separately:

Traditional IRAs—You can total RMDs from all IRAs and withdraw from one or more of them.
401(k)s and employer-sponsored plans—RMDs must be withdrawn separately from each account.

Step 3: Use the Correct Life Expectancy Table

The IRS provides different life expectancy tables to determine your distribution period:

Uniform Lifetime Table—Used if you are the account owner and your spouse is not more than 10 years younger.
Joint Life and Last Survivor Table—Used if your spouse is more than 10 years younger and is your sole beneficiary.
Single Life Expectancy Table—Used for beneficiaries of inherited accounts.

For example, at age 73, the Uniform Lifetime Table divisor is 26.5. If your account balance is $100,000, your RMD calculation is:

$100,000 ÷ 26.5 = $3,773.58

Step 4: Withdraw Your RMD on Time

You must withdraw the required amount by December 31 each year after your first RMD. Missing the deadline results in penalties:

The penalty for missed RMDs is 25% of the amount not withdrawn.
If corrected within the IRS’s Correction Window ↗, the penalty is reduced to 10%.

To avoid penalties, set up automatic withdrawals or reminders.

Example: RMD Calculation for Multiple Accounts

Meet Jack, who turns 73 in 2025 and must take his first RMD by April 1, 2026, at the latest. Jack has been saving for retirement using a combination of Traditional IRAs and 401(k)s from different employers. Over the years, his savings have grown across multiple accounts:

Traditional IRA #1: $250,000 (a rollover IRA from a previous employer’s 401(k))
Traditional IRA #2: $100,000 (an IRA he contributed to separately)
401(k) #1: $200,000 (from his most recent employer)
401(k) #2: $150,000 (from an older job that he never rolled over)

Since Jack has reached the RMD age, the IRS requires him to start withdrawing from these accounts. The IRS uses life expectancy tables to determine RMD amounts. At age 73, Jack’s distribution factor from the Uniform Lifetime Table is 26.5.

Using the standard RMD formula (Account Balance ÷ Life Expectancy Factor), Jack calculates the RMD for each account:

Traditional IRA #1: $250,000 ÷ 26.5 = $9,433.96
Traditional IRA #2: $100,000 ÷ 26.5 = $3,773.58
401(k) #1: $200,000 ÷ 26.5 = $7,547.17
401(k) #2: $150,000 ÷ 26.5 = $5,660.38

Therefore, the total RMD for year 2025 is $26,415.09. Jack must take these RMDs as follows:

For IRAs—The total IRA RMD amount ($9,433.96 + $3,773.58 = $13,207.54) can be withdrawn from either IRA or split between them. He is not required to take separate RMDs from each IRA.
For 401(k)s—Jack must take RMDs from each 401(k) account individually. That means he has to withdraw at least $7,547.17 from 401(k) #1 and $5,660.38 from 401(k) #2. Of course, Jack can withdraw more than the minimum if he desires.

Key Considerations

Still Working Exception—If you are still employed and do not own 5% or more of the company, you may be able to delay RMDs from your current employer’s 401(k). For more details, see The “Still Working” RMD Exception Refresher by Greenleaf Trust ↗.
RMD Aggregation—IRA RMDs can be combined, but 401(k) RMDs must be taken separately from each plan.
Inherited Accounts—Beneficiaries must use the Single Life Expectancy Table and follow special withdrawal rules.

Helpful RMD Calculation Tools

Calculating your RMDs accurately is essential to ensure compliance with IRS rules and avoid penalties. To simplify this process, you can use online RMD calculators that estimate your withdrawal amounts based on your age and account balances. These tools help you quickly determine your RMD based on IRS life expectancy tables and your retirement account balances:

Using these tools can give you a clearer picture of your required withdrawals, helping you plan for taxes and ensure you’re withdrawing the correct amount each year.

Next: Required Minimum Distribution (RMD) Rules for Account Types

Now that you know how to calculate your RMD, let’s explore how the rules vary across different retirement accounts like IRAs, 401(k)s, Roth accounts, and more.

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