RMD (Required Minimum Distribution) Forecaster

What are RMDs?

Required Minimum Distributions (RMDs) are mandatory withdrawals that you must take from tax-deferred retirement accounts (like Traditional IRAs, 401(k)s, 403(b)s, SEP IRAs, and SIMPLE IRAs) once you reach a certain age. The purpose is to ensure the government eventually collects income tax on the money that has grown tax-deferred. Want to visualize that tax hit? Use the Tax Bracket Modeler.

Note: Roth IRAs do not have RMDs during the original owner's lifetime. Curious if a conversion strategy is right for you? Check the Roth Conversion Ladder Modeler.

When Do RMDs Start? (SECURE 2.0 Act)

The starting age for RMDs depends on your birth year, following changes introduced by the SECURE 2.0 Act:

• If you were born between 1951 and 1959, your RMD starting age is 73.
• If you were born in 1960 or later, your RMD starting age is 75.

This calculator automatically determines your starting age based on the current age you enter.

How are RMDs Calculated?

The RMD calculation is based on two factors:

1. Prior Year-End Balance: The total balance of your applicable retirement accounts as of December 31st of the previous year.
2. Distribution Period (Factor): A life expectancy factor determined by the IRS, found in the "Uniform Lifetime Table" (ULT).

The formula is: RMD = Prior Year-End Balance / Distribution Period.

How This Forecaster Works

This tool simulates your portfolio growth year-by-year, adding contributions, applying returns, and then calculating and subtracting the RMD once you reach the required age. It helps visualize how RMDs might impact your account balance and provide a significant source of taxable income in later retirement years. To see how long your money might last with normal withdrawals, try the Retirement Savings Calculator.