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RMD CALCULATOR

Beneficiary Type

Your Year of Birth

Current Year

Account balance as of 31/12/2024

Expected Growth Rate (%)

Marginal Tax Rate (%)

Currency

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✅ What is a Required Minimum Distribution (RMD)?

A required minimum distribution (RMD) is the minimum amount you must withdraw each year from certain tax-deferred retirement accounts once you reach a specified age.

✅ Which types of retirement accounts are subject to RMDs?

RMD rules apply to traditional IRAs, SEP IRAs, SIMPLE IRAs, employer-sponsored retirement plans (such as 401(k), 403(b), 457(b) plans), and inherited IRAs.
Note: Roth IRAs (while owner is alive) are not subject to RMDs.

✅ When must I begin taking RMDs?

You must take your first RMD for the year in which you reach age 73 (for those who reach 72 after December 31, 2022).

You can delay the first RMD until April 1 of the following year.
For subsequent years the RMD must be taken by December 31 of each year.

✅ How is the amount of the RMD calculated?

Generally, you divide the account balance as of December 31 of the prior year by the life-expectancy factor from the IRS tables (Uniform Lifetime Table or another table depending on situation).

Then you repeat that for each IRA you own (though you may aggregate certain IRAs in withdrawal) in some cases.

✅ Can I withdraw more than the RMD amount?

Yes. Withdrawing more than the RMD is allowed. However, any excess amount does not reduce the RMD requirement for future years.

✅ What happens if I don’t take the RMD or take less than required?

If you fail to withdraw the full amount by the deadline, you may be subject to an excise tax equal to 25% of the amount not withdrawn. If the mistake is corrected timely, this may be reduced to 10%.

✅ Can I aggregate multiple accounts when taking an RMD?

For IRAs: Yes — you must calculate the RMD separately for each IRA, but you may withdraw the total amount from one or more of those IRAs.

For employer-plans: The rules vary; generally, each plan’s RMD must be calculated and taken separately (except certain 403(b) contracts allow aggregation).

✅ Does the RMD rule apply to Roth IRAs and Roth 401(k)s?

- Roth IRAs: During the owner’s lifetime, Roth IRAs are not subject to RMDs.
- Roth 401(k)s or other Roth accounts in employer plans: The general RMD rules may apply depending on plan and law.

✅ If I have an inherited retirement account, how do the RMD rules apply?

For inherited accounts: There are special rules. For example, after the death of the original owner, non-spouse beneficiaries may need to withdraw the entire balance within 10 years under the “10-year rule”.
The specific timeline and required distributions depend on when the owner died, the beneficiary type, and other factors.

✅ What is the “required beginning date” for an RMD?

The required beginning date is the date by which the first RMD must be taken: Generally April 1 of the year following the year you reach the applicable age (73).
For subsequent years, the RMD must be taken by December 31 of each calendar year.

✅ What is an RMD Calculator?

An RMD Calculator helps estimate the Required Minimum Distribution (RMD) you must withdraw from your retirement accounts each year, based on your age, account balance, IRS life expectancy tables, and tax rate.

✅ How does the RMD Calculator work?

The calculator uses your account balance (as of December 31 of the previous year) and an IRS divisor (from the Uniform, Joint Life, or Single Life tables) to calculate your RMD amount.
Formula:

RMD = Account Balance ÷ IRS Life Expectancy Factor (Divisor)

✅ What information do I need to use the calculator?

You’ll need:

Beneficiary type (Uniform Lifetime, Joint Life, or Single Life)
Year of birth
Current year
Account balance (as of 31/12 of the prior year)
Expected annual growth rate (%)
Marginal tax rate (%)
Preferred currency

✅ What does the IRS divisor mean in the results?

The IRS divisor represents your life expectancy factor according to the IRS table that applies to your situation. A smaller divisor means a higher RMD.

✅ What does the “Withdrawal Deadline” field show?

This field shows the final date by which you must withdraw your first RMD to avoid penalties — usually April 1 of the year following the year you turn 73.

✅ What does “Estimated Tax on RMD” mean?

This is the approximate amount of income tax owed on your RMD based on your entered marginal tax rate.
Example: If your RMD is $28,301.89 and your tax rate is 22%, tax ≈ $6,226.42.

✅ What is “After-Tax Withdrawal”?

It’s the net amount you receive after deducting estimated taxes from your RMD.
Formula:

After-Tax Withdrawal = RMD – Estimated Tax

✅ What does “Next Year Balance (Projected)” show?

This value estimates your account balance for the next year after subtracting your RMD and adding the expected growth rate.

✅ What is “Next Year RMD (Projected)”?

It’s the calculated RMD for the next year, assuming your account grows at the rate you entered and based on the next IRS divisor for your new age.

✅ Can this calculator handle different beneficiary types?

Yes. You can select from:

Uniform Lifetime Table: For most account owners.
Joint Life & Last Survivor: For owners whose spouse is the sole beneficiary and more than 10 years younger.
Single Life Table: Primarily for beneficiaries of inherited accounts.

✅ Key Features of the RMD Calculator

Real-Time Calculation – Instantly computes RMDs based on current IRS tables.
Flexible Beneficiary Options – Supports all major IRS divisor types.
Projected Growth Analysis – Shows next-year balance and RMD.
Tax Estimation – Calculates after-tax withdrawal based on your marginal rate.
User-Friendly Interface – Simple fields and automatic results section.
Currency Selection – Supports multi-currency (USD and more).
Visual Summary – Includes a results chart for clear financial insight.
Withdrawal Deadline Reminder – Highlights the exact date to take RMDs.
Accurate IRS Divisor Integration – Uses the latest IRS tables.
Responsive Layout – Works smoothly on desktop and mobile browsers.

✅ How to Use the RMD Calculator (Step-by-Step)

Choose “Beneficiary Type.”
Select Uniform Lifetime, Joint Life & Last Survivor, or Single Life.
Enter your Year of Birth.
Enter the Current Year.
Provide your Account Balance as of December 31 of the previous year.
Enter Expected Growth Rate (%).
Enter your Marginal Tax Rate (%).
Select your preferred Currency.

Click “Calculate.”
→ Your RMD, tax, next-year balance, and projections appear instantly.

✅ Who Uses the RMD Calculator?

Retirees age 73+ managing IRA or 401(k) withdrawals.
Financial planners and tax advisors helping clients plan distributions.
Beneficiaries of inherited retirement accounts.
Pre-retirees estimating future RMD obligations.
CPAs and estate planners preparing tax projections.

✅ Is It Necessary to Use an RMD Calculator?

Yes — highly recommended.
Because:

It ensures IRS compliance (avoiding up to 25% penalty).
Helps you plan withdrawals and taxes efficiently.
Provides clarity for financial and estate planning.
Avoids errors in manual RMD calculations.