ToolGrym field guide
How Required Minimum Distributions Work
The basic RMD formula is simple, but the correct divisor, account type, beneficiary situation, and required beginning date determine whether the result is usable.
- Format
- Plain-English explainer
- Practice
- 3 linked calculators
Written by the ToolGrym Editorial Team
Last reviewed:
The formula
For a typical owner calculation, the prior December 31 balance is divided by the applicable IRS distribution period. The RMD calculator lets you inspect the arithmetic; enter the factor from the current IRS table.
Timing and tax
IRAs generally begin at the statutory starting age, while some employer plans can delay for a current employee if the plan allows. Withdrawals are generally taxable except for basis or qualified tax-free amounts. Missed or short RMDs can create an excise tax.
Verify the edge cases
Spouse beneficiaries, inherited accounts, Roth accounts, multiple plans, and still-working rules can change the answer. Confirm with the plan administrator or tax professional.
Written by
The ToolGrym editorial team builds and maintains every calculator on this site. Each tool’s formulas are implemented as tested code and verified against authoritative sources such as the CFPB, Federal Reserve, IRS, and BLS.