Required Minimum Distribution (RMD) Calculator Formula

Understand the math behind the required minimum distribution (rmd) calculator. Each variable explained with a worked example.

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Formulas Used

Required Minimum Distribution

rmd_amount = account_balance / life_expectancy

Distribution Factor

distribution_factor = life_expectancy

RMD as % of Balance

rmd_pct = 100 / life_expectancy

Variables

VariableDescriptionDefault
account_balanceAccount Balance (Dec 31)(USD)500000
ageAge This Year(years)75
life_expectancyDerived value= age <= 73 ? 26.5 : (age <= 75 ? 24.6 : (age <= 80 ? 20.2 : (age <= 85 ? 16.0 : (age <= 90 ? 12.2 : 8.6))))calculated

How It Works

Required Minimum Distributions

RMD = Account Balance / Distribution Period

Starting at age 73 (SECURE 2.0 Act), you must withdraw minimum amounts from Traditional IRAs and 401(k)s each year.

Approximate Distribution Periods

| Age | Period | ~RMD % | |---|---|---| | 73 | 26.5 | 3.77% | | 75 | 24.6 | 4.07% | | 80 | 20.2 | 4.95% | | 85 | 16.0 | 6.25% | | 90 | 12.2 | 8.20% |

Worked Example

$500,000 balance at age 75.

account_balance = 500000age = 75
  1. 01Distribution period at 75 = 24.6
  2. 02RMD = $500,000 / 24.6 = $20,325
  3. 03RMD as % = 100 / 24.6 = 4.07%

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