Required Minimum Distribution Calculator

How does the RMD Calculator work?

The Required Minimum Distribution (RMD) calculator estimates your RMD for 2026 by collecting a few key details, including your age, retirement account balance, and contribution behavior. This information is used to estimate the minimum amount that you are required to withdraw in 2026 and your remaining balance after potential investment earnings.

To use the RMD calculator, begin by entering the following information:

• Your date of birth
• Your retirement account balance as of last December 31
• The expected annual rate of return on your account
  • Your rate of return depends on your investment type and performance, though the average annual stock market return rate has historically been around 6% to 7% after accounting for inflation. 
• Your planned annual recurring contribution to the account
• Whether your spouse is:
  • Your sole designated beneficiary, and 
  • 10 years younger than you

The calculator uses the IRS life expectancy table to determine a life expectancy factor based on your age (and, in some cases, your spouse's age). It then divides your retirement account balance from last December 31 by this factor to estimate the minimum amount you must withdraw for the year.

Example: Calculating the RMD on $500,000

Let’s look at an example of what an RMD on a $500,000 account balance might look like. 

A 75-year-old, unmarried individual is trying to calculate their RMD for 2026. They ended the previous year with a 401(k) balance of $500,000. Based on the applicable IRS life expectancy table, the individual's life expectancy factor is 24.6.

To estimate the RMD, the account balance is divided by 24.6:

$500,000 ÷ 24.6 = $20,325.20

In this example, the individual's estimated RMD for 2026 is $20,325.20.

What if I have more than one retirement account?

RMDs generally apply to all tax-deferred retirement accounts, but the rules may differ depending on the account type:

• IRAs (traditional, SEP, Simple) and 403(b)s: You generally need to calculate the RMD for each account separately, but you can withdraw the combined RMD total from one account or split it across several.
• 401(k)s and 457(b)s: You must generally calculate and take RMDs for each account separately.

Certain financial tools can help you project your retirement income and estimate your distributions. Empower’s Retirement Planner is free to use, allowing you to easily connect your retirement accounts and plan for  withdrawals all in one place. 

How do Required Minimum Distributions (RMDs) work?

Required minimum distributions (RMDs) are mandatory withdrawals from tax-deferred retirement accounts, like traditional IRAs and 401(k)s, that begin the year you reach the IRS starting age — currently age 73. Your first withdrawal is usually due by April 1 of the following year. If you wait until April 1 to take your first RMD, you’ll generally still need to take your second RMD by December 31 of that same year.

Some workplace retirement plans, such as 401(k)s, may let you wait until the year you retire, unless you own 5% or more of the business sponsoring the plan. Roth IRAs and designated Roth accounts, including Roth 401(k)s and 403(b)s, generally don’t require RMDs for the original owner, but beneficiaries still need to follow IRS distribution rules.

What retirement accounts have RMDs?

RMD rules apply to the original account holders and beneficiaries of the following types of retirement accounts:

• Pre-tax 401(k) plan accounts
• Traditional IRAs (and Roth IRA beneficiaries)
• SEP IRAs
• SIMPLE IRAs
• Pre-tax 403(b) plan accounts
• Pre-tax 457(b) plan accounts
• Profit-sharing plans
• Other defined contribution plans

The original owners of Roth IRAs and designated Roth accounts are not required to take minimum distributions at age 73. However, upon inheriting either of these accounts, beneficiaries must follow the RMD rules outlined by the IRS.

Do I pay taxes on RMDs?

Yes, RMDs made up of pre-tax contributions — and any investment earnings on those contributions — are generally considered taxable income. Therefore, taking RMDs typically results in higher reported income on your tax return and, thus, higher income taxes during the year they are taken. Beneficiaries of inherited Roth IRAs, however, are able to take tax-free distributions, although withdrawals of earnings may be subject to income taxes.

What happens if I don’t take an RMD?

If you miss an RMD, or your distribution is under the required amount, you may be subject to a 25% excise tax on the amount not distributed. Under the SECURE 2.0 Act, the excise tax can be reduced to 10% if the full distribution is made within two years. This reduced penalty only applies to late withdrawals in 2023 or later. 

You may be able to receive an exception to the penalty if you can show that the shortfall in distributions was due to a reasonable error and that reasonable steps are being taken to remedy the shortfall.

Can I withdraw more than the RMD?

Yes, you can withdraw more than the minimum amount from your retirement accounts. However, your distributions may count toward your taxable income, except for qualified distributions from designated Roth accounts. Excess distributions will not be counted toward your future RMDs.

What are the RMD rules for inherited IRAs and workplace retirement accounts?

In the year of the original owner’s death, you are responsible for ensuring that any RMD has been taken. Starting the following year, RMD rules usually depend on your beneficiary status and, for workplace plans, the distribution options allowed under the plan. You are generally required to distribute the entire account within 10 years of the account owner’s death. However, exceptions may exist if you are the surviving spouse, the original owner’s minor child, a disabled or chronically ill individual, or not more than 10 years younger than the original owner.

If you recently inherited an IRA or workplace retirement account, the first step is to find out whether the original owner still owed a required minimum distribution for the year they died and which beneficiary category applies to you. Those answers shape both your immediate deadlines and your long-term withdrawal timeline.

Consider consulting with a financial professional for help managing your inherited retirement accounts while adhering to all applicable IRS rules. 

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