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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  • 2Missed RMD penalty: 25% of amount not withdrawn (10% if corrected quickly).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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