Required Minimum Distribution (RMD) Projector
Example: IRA/401(k) balance at age 73: 800000 $ · Expected annual portfolio return: 5 %
| First-year RMD (age 73) | $30,189 |
| Total RMDs distributed over 10 years | $370,477 |
| Balance remaining after 10-year RMD window | $822,069 |
Worked example
An $800,000 IRA balance at age 73 generates a first-year RMD of approximately $30,189 (using the IRS Uniform Lifetime Table factor of 26.5). Over 10 years at a 5% return, total forced distributions reach roughly $370,000 while the residual balance remains around $850,000 — the account is not depleted but each withdrawal is taxable ordinary income.
Frequently asked questions
When do RMDs start?
The SECURE 2.0 Act (2022) raised the RMD starting age to 73 for anyone who turns 72 after December 31, 2022, and further to age 75 for those born in 1960 or later. Check IRS Publication 590-B for your birth year's specific start date.
What is the penalty for missing an RMD?
Failing to take your full RMD triggers a 25% excise tax on the shortfall (reduced from 50% under SECURE 2.0). If you correct the error within two years, the penalty drops to 10%. RMDs are serious — missing them is costly.
Do Roth accounts have RMDs?
Roth IRAs have no RMDs for the original owner during their lifetime. However, inherited Roth IRAs are subject to RMD rules for non-spouse beneficiaries. This is one reason many planners recommend Roth conversions in early retirement to reduce future RMD burden.
Can I reduce my future RMDs?
Strategies include Roth conversions in low-income years before RMD age, qualified charitable distributions (QCDs) of up to $105,000/year (2025, indexed) directly to charity to satisfy RMDs tax-free, and spending down traditional accounts before age 73 to lower the taxable balance.