The RMD Calculator is an essential financial planning tool designed to help individuals and financial advisors determine the required minimum distributions from retirement accounts. This comprehensive calculator takes into account crucial factors including account balance, age, and specific retirement account types to provide accurate withdrawal requirements in accordance with IRS regulations. Financial professionals can utilize this tool to assist clients in planning their retirement distributions and avoiding potential tax penalties for insufficient withdrawals. The calculator simplifies complex RMD calculations, ensuring compliance with current tax laws while helping to maintain optimal retirement income strategies. Whether managing individual retirement accounts or advising multiple clients, this tool streamlines the RMD calculation process and helps maintain regulatory compliance. Start calculating your required minimum distributions today to ensure proper retirement account management and tax efficiency.
Use the 2023 RMD Calculator to divide your December 31 account balance by the correct IRS life-expectancy factor and reveal the dollar amount you must withdraw this year. Missing that withdrawal triggers a 25 % penalty—reduced from 50 % under SECURE 2.0—on the shortfall (SECURE 2.0, 2022).
Enter your year-end balance, age, and (optionally) account type; the tool divides your balance by the IRS “distribution period” to output the dollar amount you must withdraw. Missing an RMD triggers a 50 % excise tax on the shortfall (IRS Pub. 590-B, 2023).
