Required Minimum Distribution (RMD) Timeline & Tax Impact Calculator (2025 Update)
"Estimate your mandatory retirement withdrawals, annual tax burden, and portfolio longevity, based on the latest IRS 2025 rules."
Starting at age 73 (or 75 for certain birth years under SECURE 2.0), retirees must begin taking Required Minimum Distributions (RMDs) from tax-deferred accounts like Traditional IRAs and 401(k)s. This calculator projects your annual RMDs and estimates their tax impact using 2025 IRS tables. It helps you plan ahead, optimize withdrawal timing, and minimize unnecessary tax exposure.
🎂 Personal Information
Used to determine RMD start year
Determines RMD start age under SECURE 2.0
💰 Account Information
Total balance in tax-deferred retirement accounts
Optional for users still contributing
How far ahead to project
📊 Financial Parameters
Portfolio growth rate before withdrawals
Used to calculate tax impact of each RMD
What Are Required Minimum Distributions (RMDs)?
RMDs are the minimum annual withdrawals you must take from traditional retirement accounts once you reach a certain age. Failing to take your RMD can lead to a 25% IRS penalty (reduced to 10% if corrected quickly under SECURE 2.0).
How Are RMDs Calculated?
RMDs are determined by dividing your account balance by your IRS life expectancy factor (Uniform Lifetime Table).
Example: At age 73, your factor is 26.5
$600,000 ÷ 26.5 = $22,642 first RMD
Updated 2025 Rules (SECURE 2.0 Act):
RMD Start Ages:
- Born 1951–1959: RMD starts at age 73
- Born 1960 or later: RMD starts at age 75
Penalty Changes:
- Penalty reduced from 50% → 25%
- Further reduced to 10% if corrected quickly
💡 Pro Tip:
Roth IRAs are not subject to RMD rules during the original owner's lifetime. Consider diversifying with Roth accounts to reduce mandatory withdrawals in retirement.