Calculate RMD by Age
If you’re retired or approaching retirement, understanding how to calculate your Required Minimum Distribution (RMD) is essential. The IRS requires individuals to begin taking RMDs from traditional IRAs, 401(k)s, and other tax-deferred retirement accounts once they reach a certain age—currently age 73 under the SECURE 2.0 Act (and age 75 for those born in 1960 or later).
The good news? Calculating your RMD by age is straightforward once you understand the formula and the factors involved.
The Basic RMD Formula
To calculate your RMD, use this formula:
RMD = Retirement Account Balance ÷ Life Expectancy Factor
Your account balance is the total value of your retirement account(s) as of December 31 of the previous year. The life expectancy factor comes from the IRS Uniform Lifetime Table, which assigns a divisor based on your age.
Example: RMD at Age 73
Let’s say you’re 73 and your IRA had a balance of $400,000 on December 31 of the prior year. According to the IRS table, the life expectancy factor for age 73 is 26.5.
- $400,000 ÷ 26.5 = $15,094.34
That’s the amount you must withdraw by December 31 to satisfy your RMD requirement for the year.
How the Percentage Changes with Age
As you age, the IRS life expectancy factor decreases, which increases the percentage you’re required to withdraw each year. For example:
| Age | Divisor | Approximate RMD % |
| 73 | 26.5 | 3.77% |
| 75 | 24.6 | 4.07% |
| 80 | 18.7 | 5.35% |
These percentages increase gradually, ensuring that retirement funds are withdrawn over your expected lifetime.
Special Cases
- If your spouse is more than 10 years younger and your sole beneficiary, you may use the Joint Life and Last Survivor Table, which allows for a longer life expectancy and lower RMDs.
- Inherited IRAs often follow different rules and may require full distribution within 10 years, depending on your relationship to the original account owner.
Final Tip
To avoid penalties (which can be as high as 25%), use a reliable RMD calculator or speak with a financial advisor. This ensures you calculate the correct amount based on your age, account type, and applicable IRS tables.
Dimov Tax presents expert aid in RMD calculations. Contact us today for professional assistance. Our dedicated team of advisors is ready to manage all the processes.