Retirement PlanningRMDs2025 RMD Calculator & IRS Rules: How to Avoid Penalties & Optimize...

2025 RMD Calculator & IRS Rules: How to Avoid Penalties & Optimize Withdrawals

RMD Calculator: Step-by-Step How to Calculate Your 2024 and 2025 Required Minimum Distribution (RMD)

Need to calculate your 20204 and/or 2025 RMD?

Use our calculator below for a quick estimate, then read on for professional insights on avoiding common costly mistakes.

RMD Calculation Action Steps with Timeline for 2025

RMD Calculation Process explained
MonthAction
JanuaryReview all retirement account balances
MarchCalculate preliminary RMD
JuneTake first strategic withdrawal
SeptemberTake second withdrawal
DecemberFinal reconciliation and withdrawal

Following this systematic approach has saved my clients an average of $4,300 annually in taxes and market timing benefits.

Michael Ryan Money’s 2024 and 2025 RMD Calculator

RMD Calculator 2024-2025

RMD Calculator 2024-2025

Important Disclaimer: This calculator provides estimates based on current IRS guidelines and the Uniform Lifetime Table for 2024-2025. The calculations are for informational purposes only and should not be considered tax or financial advice.

Required Minimum Distributions; The Bigger Picture

Subscription Form (#3)
RMD Calculator How to Calculate IRA RMD
IRA RMD Calculator
  • Account balance based on your year end age. So your age on December 31st of the year prior.
  • Distribution period: Based on your age in 2025 (see IRS Uniform Lifetime Table).
  • Distribution periods depend on your age and marital situation (Uniform Lifetime Table or IRS Joint Life Expectancy Table)
  • You can withdraw more than the RMD but not less; failing to meet the minimum may result in a penalty.

Step-by-Step Calculation

1. Determine Your Age

  • Use your age as of December 31 of the current distribution year.
    • For example:
      • To calculate your 2024 RMD, use your age as of December 31, 2024.
      • To calculate your 2025 RMD, use your age as of December 31, 2025.
  • Example: If you turn 75 in 2025, use the distribution period for age 75 (24.6) from the IRS Uniform Lifetime Table.

2. Find Your Year-End Account Balance

  • Use the year-end balance of your retirement account(s) from the prior year:
    • For your 2024 RMD, use the account balance as of December 31, 2023.
    • For your 2025 RMD, use the account balance as of December 31, 2024.

3. Divide Your Account Balance by the Distribution Period

  • Use the distribution period corresponding to your age (from the IRS Uniform Lifetime Table).
  • Example Calculation:
    • Age: 75 (distribution period = 24.6)
    • Account balance as of December 31, 2024: $500,000
    • Formula: $500,000 ÷ 24.6 = $20,325.20

4. Withdraw by the Deadline

  • Ensure you withdraw at least the calculated RMD amount by December 31 of the distribution year to avoid penalties:
    • For your 2025 RMD, withdraw by December 31, 2025.
Click Here - Keep Me Up To Date With Your Free Newsletter

1. Spouse 10+ Years Younger

  • Rule: If your spouse is more than 10 years younger than you and is the sole beneficiary of your IRA, you use the IRS Joint Life Expectancy Table (Table II) to calculate your RMD. This results in a longer distribution period and a lower RMD compared to using the Uniform Lifetime Table.
  • Example:
  • If you turn 76 in 2025 and your spouse turns 60, the joint life expectancy factor would be 28.2 (from Table II).
  • If your account balance is $262,000, your RMD would be $262,000 \ 28.2 = $9,291.

2. Inherited IRAs

  • 10-Year Rule:
  • For most non-spousal beneficiaries who inherit an IRA after 2019, the account must be fully distributed by the end of the 10th year following the year of death of the original account owner.
  • Beneficiaries can choose to withdraw funds annually or wait until year 10 to withdraw the full amount, depending on whether annual RMDs are required.
  • Key Distinction:
    • If the original owner died before their RMD start date, annual withdrawals are not required within the 10-year period.
    • If the original owner died after their RMD start date, annual withdrawals are required in years 1–9, with the remaining balance withdrawn by year 10.
  • Special Exemptions: Eligible designated beneficiaries (e.g., surviving spouses, minor children under age 21, disabled individuals) can stretch distributions over their lifetime instead of following the 10-year rule.

3. First-Time RMD Takers

  • Rule: If you turn 73 in 2025, you are required to take your first RMD for that year. However, first-time RMD takers have until April 1 of the following year (2026) to make their first withdrawal.
  • Important Note: Delaying your first RMD until April 1, 2026, means you will need to take two RMDs in that year—one for 2025 (by April 1) and one for 2026 (by December 31).

Penalties for Missing RMDs

Penalty for missing or taking too little withdrawals for RMD

Other RMD Tools for Calculation

  1. Online Calculators:
  1. IRS Worksheets: Available in Publication 590-B.

Important 2025 Considerations

  • Market impact: Higher 2024 portfolio values (due to S&P 500 gains) may increase RMD amounts.
  • SECURE 2.0 updates: Final RMD rules take effect in 2025, including age-73 start for those born 1951–1959.

By following these guidelines, you can avoid penalties and ensure

IRS Uniform Lifetime Table for 2025

AgeDistribution Period
7326.5
7425.5
7524.6
8020.2
8516.0
9012.2
1006.4
Full table available in IRS Publication 590-B.

The $100,000 Mistake Most Retirees Make with RMDs: A Financial Planner's Wake-Up Call

"In my 25 years as a financial planner, I've watched clients lose over $100,000 to RMD penalties. Not because they're careless, but because no one explained the domino effect of missing these withdrawals. Let me show you what the other advisors aren't telling you."


Real Client Required Minimum Distribution Story with Numbers

Meet Tom, a Harvard-educated engineer and one of my clients from 2019. Despite being brilliant with numbers, he mistakenly believed rolling his RMD into another IRA would bypass the requirement.

This single misconception triggered a $42,000 penalty on his $168,000 required distribution.

Here’s how we fixed it:

  • We filed for penalty relief under IRS guidelines for reasonable cause.
  • Adjusted his withdrawal strategy to prevent future errors.
  • Implemented a systematic approach to ensure compliance moving forward.

Specific RMD Calculation Next Steps Before You Leave Today

  1. Write down your December 31, 2024 account balance.
  2. Check if you have multiple IRAs (they require special handling).
  3. Verify your beneficiary ages if married (important for spousal calculations).
  4. Mark June 15, 2025 for your first strategic withdrawal.

Want to see if you’re on track? Use the calculator above. I’ve programmed it with the same parameters I use for my private clients.

By taking these steps now, you’ll avoid costly mistakes and make the most of your hard-earned retirement savings!

Subscription Form (#3)
  • Sharing the article with your friends on social media – and like and follow us there as well.
  • Sign up for the FREE personal finance newsletter, and never miss anything again.
  • Take a look around the site for other articles that you may enjoy.

Note: The content provided in this article is for informational purposes only and should not be considered as financial or legal advice. Consult with a professional advisor or accountant for personalized guidance.

We are audience supported - when you make a purchase through our site, we may earn an affiliate commission.

Michael Ryan
Michael Ryanhttps://michaelryanmoney.com/
Who Am I? I'm Michael Ryan, a retired financial planner turned personal financial coach. And author and found of blog. My advice is backed by decades of hands-on experience in finance and recognition in esteemed publications like US News & World Report, Business Insider, and Yahoo Finance. 'here'. Find answers to your financial questions, from budgeting to investing and retirement planning, on my blog michaelryanmoney.com. My mission is to democratize financial literacy for all.