RMD Calculator: How Much Should I Take?

RMD rules can work differently depending on the type of account you hold. For traditional IRAs, the rules generally allow you to calculate your total RMD across all your IRA accounts and then take the full amount from one or a combination of those accounts. Employer-sponsored plans like 401(k)s and 403(b)s work differently — each plan typically requires its own separate calculation and withdrawal.

If you have multiple account types, the picture can get more complex. An investor with a mix of IRAs and employer-sponsored plans may want to review their full picture with an advisor to make sure each account is handled correctly and withdrawals are coordinated in a way that makes sense for their overall plan.

Your projected number is most useful as a starting point for bigger questions around timing, taxes, and how withdrawals fit into your overall retirement strategy. Knowing what your RMD could look like gives you something concrete to work with — and often surfaces questions worth exploring further with an advisor. 

Some employer-sponsored plans allow investors who are still working — and who don't own a significant stake in the company — to delay RMDs from that specific employer plan. This is sometimes called the "still working" exception. However, this exception generally doesn't apply to IRAs or to accounts from previous employers, which follow the standard RMD age rules regardless of your employment status.

If this situation applies to you, it's worth keeping in mind when you enter your information into the calculator. The projection you get may not reflect the delay available through your current employer's plan, so the results are most useful when you understand which accounts they apply to.

Traditional IRAs and most employer-sponsored plans like 401(k)s and 403(b)s are funded with pre-tax dollars, which means the IRS requires withdrawals to begin at a certain age so that the deferred taxes are eventually collected. That's where RMDs come in.

Roth IRAs work differently. Because contributions to a Roth IRA are made with after-tax dollars, the original account holder is generally not required to take RMDs during their lifetime. This makes Roth accounts a common consideration in longer-term retirement and estate planning. Roth 401(k)s and Roth 403(b)s have historically had different rules, though recent legislation has brought them closer in line with Roth IRA treatment. If you hold a Roth account, selecting the correct account type in the calculator helps your projection reflect the right rules.

An RMD projection gives you a forward-looking estimate based on the information you enter — your account balance, account type, birth date, and rate of return assumption. It's not intended to provide a number you'll use to file with the IRS. Consider it a tool that helps you understand the general shape of future withdrawals so you can plan ahead.

Your actual RMD for any given year is determined by your account balance as of December 31 of the prior year and the IRS life expectancy factor that applies to you. Because your balance changes over time and the rate of return assumption in the calculator is just that — an assumption — the projection will naturally differ from your actual RMD as years pass.