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Required Minimum Distributions (RMDs): Rules & Planning
RMD age, how to calculate your RMD, penalties for missing RMDs, and Roth account exceptions.
July 9, 20267 min readBy MyWealthForge
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Key Takeaways
- 1RMDs start at age 73 for traditional 401(k) and IRA.
- 2Missed RMD penalty: 25% of amount not withdrawn (10% if corrected quickly).
- 3RMD = prior year balance ÷ IRS life expectancy factor.
- 4Roth IRAs have no RMDs during owner's lifetime.
Uncle Sam eventually forces you to withdraw from tax-deferred retirement accounts — whether you need the money or not.
Plan withdrawals with retirement withdrawal order.
How to Calculate RMD
Divide December 31 balance by factor from IRS Uniform Lifetime Table. Example: $500,000 ÷ 26.5 = $18,868 at age 73.
Brokerage calculates automatically — verify their math.
Reduce Future RMDs
Roth conversions in low-income years. Qualified charitable distributions (QCDs) from IRA satisfy RMD.
See Roth vs traditional.
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