How to Calculate Your RMD: Step-by-Step with Examples (2026)
To calculate your RMD, divide your retirement account balance as of December 31 of the prior year by your life expectancy factor from the IRS Uniform Lifetime Table. For example: a 75-year-old with a $400,000 IRA balance divides $400,000 by 24.6 (the factor for age 75) = $16,260 RMD for the year. That's the complete formula — but the details matter. This guide walks through every scenario with real numbers so you can calculate yours accurately.
The RMD Formula
RMD = Prior year-end account balance ÷ Life expectancy factor
Two inputs. One calculation. The complexity comes from knowing which balance to use, which table provides the factor, and how to handle multiple accounts, a much younger spouse, or an inherited IRA.
Let's work through each component.
Already know your balance? Check your tax impact: Use our free retirement budget calculator to see how your RMD fits into your complete retirement income picture.
Step 1: Find Your Account Balance
Use the December 31 balance of the prior year — not today's balance and not the balance at the time you take the distribution.
Example: Calculating your 2026 RMD? Use your account balance as of December 31, 2025.
Your custodian (Fidelity, Vanguard, Schwab, etc.) reports this balance on your year-end statement and typically calculates your RMD for you — though you are responsible for verifying it and ensuring the withdrawal happens on time.
If you have multiple traditional IRAs: Calculate the RMD for each account separately using that account's December 31 balance. Then add them together. You can take the total from any one IRA or any combination — you don't have to withdraw proportionally from each.
Example with multiple IRAs:
| IRA account | Dec. 31, 2025 balance | Life expectancy factor (age 74) | Individual RMD |
|---|---|---|---|
| IRA #1 (Fidelity) | $300,000 | 25.5 | $11,765 |
| IRA #2 (Vanguard) | $150,000 | 25.5 | $5,882 |
| IRA #3 (Schwab) | $75,000 | 25.5 | $2,941 |
| Total | $525,000 | — | $20,588 |
You must withdraw $20,588 total — but you can take all of it from IRA #1, split it evenly, or withdraw in any combination you choose. This flexibility lets you make withdrawals based on investment strategy rather than arbitrary account-by-account rules.
Important: 401(k) accounts do not aggregate with IRAs. Each 401(k) must satisfy its own RMD independently. You cannot use an IRA withdrawal to satisfy a 401(k) RMD or vice versa.
Step 2: Find Your Life Expectancy Factor
The IRS publishes three life expectancy tables. Most people use Table III — the Uniform Lifetime Table.
When to use the Uniform Lifetime Table (Table III)
Use this table if:
- Your beneficiary is your spouse who is not more than 10 years younger than you
- Your beneficiary is anyone other than your spouse
- You have no designated beneficiary
- This is the table used in the vast majority of cases
When to use the Joint and Last Survivor Table (Table II)
Use this table only if your sole beneficiary is your spouse and your spouse is more than 10 years younger than you. The joint table produces lower RMDs because it assumes a longer combined life expectancy.
When to use the Single Life Expectancy Table (Table I)
Used by beneficiaries of inherited IRAs to calculate annual distributions under the stretch IRA rules (primarily applicable to eligible designated beneficiaries under pre-SECURE Act rules or surviving spouses).
The IRS Uniform Lifetime Table: Key Ages
This is Table III — the table used by most IRA owners. These are the 2026 factors:
| Age | Life expectancy factor | Withdrawal rate (%) |
|---|---|---|
| 72 | 27.4 | 3.65% |
| 73 | 26.5 | 3.77% |
| 74 | 25.5 | 3.92% |
| 75 | 24.6 | 4.07% |
| 76 | 23.7 | 4.22% |
| 77 | 22.9 | 4.37% |
| 78 | 22.0 | 4.55% |
| 79 | 21.1 | 4.74% |
| 80 | 20.2 | 4.95% |
| 81 | 19.4 | 5.15% |
| 82 | 18.5 | 5.41% |
| 83 | 17.7 | 5.65% |
| 84 | 16.8 | 5.95% |
| 85 | 16.0 | 6.25% |
| 86 | 15.2 | 6.58% |
| 87 | 14.4 | 6.94% |
| 88 | 13.7 | 7.30% |
| 89 | 12.9 | 7.75% |
| 90 | 12.2 | 8.20% |
| 91 | 11.5 | 8.70% |
| 92 | 10.8 | 9.26% |
| 93 | 10.1 | 9.90% |
| 94 | 9.5 | 10.53% |
| 95 | 8.9 | 11.24% |
| 96 | 8.4 | 11.90% |
| 97 | 7.8 | 12.82% |
| 98 | 7.3 | 13.70% |
| 99 | 6.8 | 14.71% |
| 100 | 6.4 | 15.63% |
Key observation: The withdrawal rate starts at 3.77% at age 73 — just below the 4% rule. By age 80, it's nearly 5%. By age 90, it's over 8%. RMDs increase as a percentage of your account each year regardless of market performance.
Step 3: Divide — and You Have Your RMD
Once you have your balance and your factor, the math is a single division:
RMD = Balance ÷ Factor
Worked Examples: Seven Common Scenarios
Example 1: Standard single IRA, first RMD at age 73
Situation: Margaret turns 73 in 2026. Her traditional IRA balance on December 31, 2025 was $480,000.
Calculation:
- Balance: $480,000
- Life expectancy factor (age 73): 26.5
- RMD: $480,000 ÷ 26.5 = $18,113
Margaret must withdraw $18,113 from her IRA by December 31, 2026 (or she could have deferred this first RMD to April 1, 2027 — but taking it in 2026 avoids doubling up distributions in 2027).
Tax impact: $18,113 added to her taxable income for 2026 at her ordinary income rate.
Example 2: Multiple IRAs — aggregate and choose where to withdraw
Situation: Robert is 76 with three traditional IRAs.
| IRA | Dec. 31, 2025 balance | Factor (age 76) | Individual RMD |
|---|---|---|---|
| Growth IRA | $450,000 | 23.7 | $18,987 |
| Income IRA | $200,000 | 23.7 | $8,439 |
| Money market IRA | $50,000 | 23.7 | $2,110 |
| Total | $700,000 | — | $29,535 |
Robert decides to take the entire $29,535 from his money market IRA and Income IRA — leaving his Growth IRA untouched to continue compounding. This is completely valid; he just needs to confirm the total withdrawal equals or exceeds $29,535 by year-end.
Example 3: Married couple with a much younger spouse — using the Joint Table
Situation: Howard is 75. His wife Patricia is 59 — 16 years younger. She is the sole beneficiary of his IRA. His IRA balance on December 31, 2025 was $600,000.
Because Patricia is more than 10 years younger and is the sole beneficiary, Howard uses Table II — the Joint and Last Survivor Table instead of the Uniform Lifetime Table.
From the Joint Table, the factor for a 75-year-old with a beneficiary age 59 is approximately 29.8.
Calculation:
- Balance: $600,000
- Joint table factor (age 75, beneficiary age 59): 29.8
- RMD: $600,000 ÷ 29.8 = $20,134
Comparison using the Uniform Lifetime Table: $600,000 ÷ 24.6 = $24,390
Howard saves approximately $4,256/year in required withdrawals — and the associated income taxes — by using the joint table. Over 15 years, that's a substantial difference in tax-deferred compounding.
Example 4: 401(k) RMD — calculated independently from IRAs
Situation: Sandra is 74 with both a traditional IRA and an old 401(k) from a previous employer.
| Account | Dec. 31, 2025 balance | Factor (age 74) | RMD required |
|---|---|---|---|
| Traditional IRA | $350,000 | 25.5 | $13,725 |
| Old 401(k) | $180,000 | 25.5 | $7,059 |
| Total | $530,000 | — | $20,784 |
Sandra cannot take $20,784 from her IRA to cover both. She must take $7,059 from the 401(k) and $13,725 from the IRA separately. Alternatively, she should strongly consider rolling the 401(k) into the IRA before next year — then she could take the total from either account going forward.
Example 5: The still-working exception — delaying 401(k) RMDs
Situation: Gerald is 74 and still working full-time for his employer. He has:
- A traditional IRA (prior savings): balance $400,000
- His current employer's 401(k): balance $250,000
IRA: Gerald must take his RMD — the still-working exception does not apply to IRAs.
- IRA RMD: $400,000 ÷ 25.5 = $15,686
Current employer's 401(k): Gerald qualifies for the still-working exception — he does not have to take an RMD from this 401(k) while still employed, as long as he does not own more than 5% of the company.
- 401(k) RMD: $0 (deferred while still working)
Gerald's total required withdrawal for 2026: $15,686 (IRA only).
When Gerald retires, his first 401(k) RMD will be due by April 1 of the following year, based on the December 31 balance from the year of retirement.
Example 6: How RMDs grow year over year
Situation: David retires at 73 with a $750,000 traditional IRA. Let's track his RMDs for 10 years, assuming 5% portfolio growth and taking only the minimum each year.
| Age | Jan. 1 balance | Factor | RMD | After RMD balance |
|---|---|---|---|---|
| 73 | $750,000 | 26.5 | $28,302 | $721,698 |
| 74 | $757,783* | 25.5 | $29,718 | $728,065 |
| 75 | $764,468 | 24.6 | $31,076 | $733,392 |
| 76 | $770,062 | 23.7 | $32,490 | $737,572 |
| 77 | $774,450 | 22.9 | $33,819 | $740,631 |
| 78 | $777,663 | 22.0 | $35,348 | $742,315 |
| 79 | $779,430 | 21.1 | $36,941 | $742,489 |
| 80 | $779,613 | 20.2 | $38,595 | $741,018 |
| 81 | $778,069 | 19.4 | $40,107 | $737,962 |
| 82 | $774,760 | 18.5 | $41,879 | $732,881 |
*Assumes 5% growth applied to prior year's post-RMD balance.
Key observations:
- Despite 5% annual growth, the portfolio balance peaks around age 79–80 and then begins declining
- RMDs increase every year in dollar terms — from $28,302 at 73 to $41,879 at 82
- By age 82, David is withdrawing 5.4% of the account annually — above the traditional 4% "safe" rate
This progression illustrates why large traditional IRA balances can create significant and growing tax burdens in advanced retirement ages — and why proactive Roth conversions before 73 make such a large difference.
Example 7: Inherited IRA RMD calculation (non-spouse, SECURE Act rules)
Situation: Jennifer inherits her father's traditional IRA in 2024. Her father was 78 and had already begun RMDs. The balance at the end of 2024 was $320,000. Jennifer is 52.
Under the SECURE Act, Jennifer (a non-eligible designated beneficiary) must:
- Take annual distributions during the 10-year period
- Fully deplete the account by December 31 of the 10th year after her father's death (2034)
The IRS has not finalized all annual RMD calculation rules for this scenario under SECURE Act, but the general approach for beneficiaries when the original owner had started RMDs is to use the Single Life Expectancy Table (Table I) for annual minimums.
Jennifer's factor at age 52 from Table I: approximately 33.8
Year 1 RMD: $320,000 ÷ 33.8 = $9,467 minimum
Each subsequent year, the factor reduces by 1.0 (33.8, 32.8, 31.8...) and is applied to the prior year-end balance.
Jennifer must take at least this minimum each year AND ensure the full balance is withdrawn by the end of year 10. She may take more than the minimum in any year to manage her tax bracket.
For inherited Roth IRAs: The same 10-year rule applies, but all distributions are tax-free — making the annual distribution amount less consequential from a tax perspective (though still required).
How the Calculation Changes Each Year
Your RMD is not a fixed amount — it changes annually based on two moving inputs:
Input 1: Account balance (changes every year) Your balance changes based on investment returns, prior withdrawals, and contributions. A strong market year increases your balance and therefore your next year's RMD. A market downturn decreases your balance and reduces the following year's RMD.
Input 2: Life expectancy factor (decreases by approximately 1.0 each year) Each year, your factor decreases — meaning RMDs increase as a percentage of your account, even when the dollar amount may fluctuate with portfolio performance.
The year-over-year calculation: Each January, calculate fresh:
- Pull your December 31 balance from the prior year's account statement
- Find your current age's factor in the Uniform Lifetime Table
- Divide — that's your new RMD for the year
There is no "carry over" of prior year calculations. Each year starts fresh.
Common RMD Calculation Mistakes
Mistake 1: Using the current balance instead of December 31 prior year balance The RMD is based on the prior year-end balance — not today's balance. If markets have moved significantly, your RMD is still based on the December 31 number.
Mistake 2: Forgetting to calculate 401(k) RMDs separately IRA RMDs can be aggregated and taken from any IRA. 401(k) RMDs cannot be satisfied by IRA withdrawals. Each 401(k) must be handled independently.
Mistake 3: Not updating the life expectancy factor each year Some people use the same factor year after year. The factor changes annually — always look up your current age in the table for each year's calculation.
Mistake 4: Forgetting inherited accounts If you inherited an IRA or 401(k), those accounts may have their own separate RMD requirements in addition to your own account RMDs. Track them separately and don't aggregate with your own IRAs.
Mistake 5: Assuming the custodian's calculation is always correct Custodians typically calculate RMDs automatically — but they may not know about all your accounts, your spouse's age, or whether you qualify for the joint table exception. Always verify the calculation yourself.
Mistake 6: Missing the April 1 deadline in year one — then missing December 31 in year two Some retirees defer their first RMD to April 1 of the following year, then forget that their second RMD is also due that same year by December 31. Two RMDs in one year, potentially a higher tax bracket, and sometimes a missed deadline — a triple problem.
Mistake 7: Taking RMDs from a Roth IRA Roth IRAs have no RMDs during your lifetime. If a custodian sends a notice suggesting an RMD from a Roth IRA, verify carefully — it's either an inherited Roth (which does have distribution requirements) or an error.
RMD Calculators and Tools
Rather than doing the math manually, several reliable tools automate the calculation:
IRS resources:
- The IRS Uniform Lifetime Table (Publication 590-B) — the official source
- IRS RMD worksheets in Publication 590-B — step-by-step guidance
Custodian calculators: Most major custodians (Fidelity, Vanguard, Schwab, Charles Schwab, TIAA) provide online RMD calculators and automatically calculate your RMD based on the accounts they hold. Log into your account and look for the RMD tools section.
Independent calculators: The IRS and various financial institutions publish free RMD calculators online. Enter your balance, age, and account type for an instant calculation.
What no calculator can do automatically: Determine whether you qualify for the joint table exception (requires knowing your spouse's age and confirming they're the sole beneficiary), or aggregate RMDs across accounts held at different custodians. You need to do that coordination yourself or with an advisor.
What to Do After Calculating Your RMD
Step 1: Decide which account(s) to withdraw from For multiple IRAs, choose the account that makes the most sense from a portfolio management perspective — take from money market or short-term bond funds first, leave equity-heavy accounts to continue compounding.
Step 2: Decide when to take it You can take the full RMD at once, quarterly, monthly, or in any pattern. Many retirees set up automatic monthly distributions equal to 1/12 of the annual RMD — simplifying planning and spreading the income throughout the year.
Step 3: Decide on withholding You can elect to have federal and state income tax withheld from your RMD. Most custodians default to 10% federal withholding, but you can increase or decrease this based on your estimated tax liability. If your RMD will significantly increase your taxable income, consider withholding more to avoid underpayment penalties.
Step 4: Decide what to do with after-tax proceeds you don't need If the RMD exceeds your spending needs, invest the after-tax proceeds in a taxable brokerage account, consider a Qualified Charitable Distribution for the charitable portion, or fund a Roth IRA if you have earned income and meet eligibility requirements.
Step 5: Plan for next year Know your approximate December 31 balance and your next age's factor — giving you a ballpark RMD for next year to incorporate into tax planning. For the strategies that reduce RMDs over time, see: RMD strategies: how to minimize the tax hit and how to reduce taxes on required minimum distributions.
Frequently Asked Questions
How do I calculate my RMD for 2026?
Divide your December 31, 2025 account balance by your life expectancy factor from the IRS Uniform Lifetime Table for your age in 2026. For example, if you turn 75 in 2026 and your December 31, 2025 balance was $500,000: $500,000 ÷ 24.6 = $20,325 RMD.
Where can I find the IRS life expectancy table for RMDs?
The IRS Uniform Lifetime Table (Table III) is published in IRS Publication 590-B — available free at IRS.gov. Your custodian's online portal also typically shows your factor and calculated RMD automatically. The complete table runs from age 72 through 120.
Do I calculate RMDs separately for each retirement account?
For traditional IRAs: calculate separately for each, but you can take the total from any combination of IRAs. For 401(k)s: each plan must be calculated and satisfied independently — you cannot use an IRA withdrawal to satisfy a 401(k) RMD.
What if my IRA lost money — do I still have to take the same RMD?
No. Your RMD is based on the December 31 prior year balance — so if your account was worth $500,000 on December 31, 2025 and dropped to $400,000 by the time you take your 2026 RMD, the RMD is still calculated on $500,000. However, next year's RMD (for 2027) will be based on the December 31, 2026 balance — which will reflect the lower value, reducing your 2027 RMD.
Can I take my RMD in installments throughout the year?
Yes — you can take your RMD as a lump sum, quarterly, monthly, or in any pattern you choose, as long as the total for the year equals or exceeds the required minimum by December 31.
What if I have both a traditional IRA and a Roth IRA?
The Roth IRA has no RMD requirements during your lifetime. Only the traditional IRA requires an RMD. Calculate and withdraw from the traditional IRA as required; leave the Roth IRA untouched as long as you want.
My custodian calculates my RMD automatically — do I still need to verify it?
Yes. Custodians calculate based on the accounts they hold — they don't know about IRAs at other institutions, whether you qualify for the joint life table exception, or the nuances of inherited account rules. Always verify the calculation is complete and accurate, particularly if you have accounts at multiple custodians.
The Bottom Line
Calculating your RMD is straightforward once you know the formula:
RMD = December 31 prior year balance ÷ IRS Uniform Lifetime Table factor for your age
The key rules to remember:
- Use the prior year-end balance — not today's balance
- Use the Uniform Lifetime Table for most situations; Joint Table only if sole beneficiary is a spouse more than 10 years younger
- IRAs can be aggregated — calculate separately, take from any IRA
- 401(k)s cannot — each must be satisfied independently
- The penalty for missing an RMD is 25% of the shortfall (10% if corrected within 2 years)
- Your RMD is a minimum — you can always withdraw more
The calculation itself takes five minutes once you have the December 31 balance and the table. The planning around it — which account to draw from, when to take it, what to withhold, and how to manage the tax impact — is where the real work happens.
For the complete RMD overview and rules, see: required minimum distributions explained. For strategies to reduce the tax burden, see: how to reduce taxes on required minimum distributions.
Use our free retirement budget calculator to model how your RMD fits into your total retirement income picture.
Last updated: May 2026. This article is for educational purposes and does not constitute personalized financial advice. Consult a licensed financial advisor or CPA for guidance specific to your situation.