Required Minimum Distribution (RMD) Calculator

SECURE 2.0 Act: New RMD Ages

The SECURE 2.0 Act, signed into law in December 2022, pushed back the age at which retirees must begin taking required minimum distributions. If you were born between 1951 and 1959, your RMD start age is 73. If you were born in 1960 or later, your RMD start age increases to 75. This gives your retirement savings additional years of tax-deferred growth before mandatory withdrawals begin. Note that Roth IRAs are exempt from RMDs during the owner's lifetime, though Roth 401(k)s were subject to RMDs until 2024 -- the SECURE 2.0 Act eliminated that requirement starting in 2024.

Inherited IRA: The 10-Year Rule

Under the SECURE Act of 2019, most non-spouse beneficiaries who inherit an IRA must withdraw the entire account within 10 years of the original owner's death. The IRS has further clarified that if the original owner had already begun taking RMDs, the beneficiary must also take annual distributions during the 10-year window. Eligible designated beneficiaries -- including surviving spouses, minor children, disabled or chronically ill individuals, and beneficiaries not more than 10 years younger than the decedent -- may still use the stretch IRA approach and take distributions over their own life expectancy.

Qualified Charitable Distributions (QCD)

If you are 70 1/2 or older, you can make a Qualified Charitable Distribution of up to $105,000 per year directly from your IRA to a qualified charity. A QCD counts toward satisfying your RMD for the year but is excluded from your taxable income. This is one of the most effective tax strategies for retirees who are charitably inclined, as it reduces your adjusted gross income, which can lower Medicare premiums, reduce Social Security taxation, and keep you below thresholds for the Net Investment Income Tax. The QCD must go directly from the IRA custodian to the charity -- you cannot withdraw the funds and then donate them.

Roth Conversions to Reduce Future RMDs

Converting traditional IRA or 401(k) funds to a Roth IRA can be a powerful strategy for reducing future RMDs. Since Roth IRAs are not subject to RMDs during your lifetime, every dollar you convert reduces the balance that will generate future required distributions. The conversion itself is taxable as ordinary income, so the optimal approach is to convert in years when your income is lower -- such as between retirement and the start of Social Security benefits or RMDs. Spreading conversions over multiple years can keep you in a lower tax bracket while systematically reducing your future RMD obligations and the associated tax burden.