Knowing how to calculate your RMD starts with one IRS formula: divide the account balance as of December 31 of the prior year by the distribution period for the age you reach this year.2,3 For distribution years 2022 and later, that distribution period comes from the IRS Uniform Lifetime Table, which sets a divisor of 26.5 at age 73.6
This article walks through the required minimum distribution calculation one step at a time: whether an RMD applies to you, which balance and age to use, where the divisor comes from, and how the math works when you hold more than one account. It is written as a companion to our RMD calculator. For the order in which to draw from different accounts, see Retirement Withdrawal Order: A Complete Guide, and for inherited accounts, see Inherited IRA 10-Year Rule: What Beneficiaries Need to Know.
| Quick Answer: To calculate your RMD, divide each account’s December 31 balance from the prior year by the IRS distribution period for the age you reach by the end of this year.2,3 Owners whose spouse is not a sole beneficiary more than 10 years younger use the Uniform Lifetime Table.3 At age 73 the divisor is 26.5, which works out to about 3.77% of the balance, by our calculation.6 RMDs generally begin at age 73 for people born 1951 through 1959 and at age 75 for people born in 1960 or later.4,5 |
How to Calculate Your RMD in Four Steps
Step 1: Confirm that an RMD applies
Required minimum distributions apply to traditional, SEP and SIMPLE IRAs and to employer plans such as 401(k), 403(b) and 457(b) plans.2 They start in the year you reach your applicable age. Under the statute, the applicable age is 73 for people who reach age 72 after 2022 and age 73 before 2033, and 75 for people who reach age 74 after 2032.4 By our calculation, that means age 73 for people born 1951 through 1959 and age 75 for people born in 1960 or later. People born in 1959 fall under both provisions; proposed IRS regulations published in July 2024 would set their applicable age at 73.5
Roth IRAs do not require withdrawals while the owner is alive, and the same applies to designated Roth accounts in a 401(k) or 403(b) plan.2 If every dollar you hold is in those accounts, there is no lifetime RMD to calculate.
Step 2: Find the prior-year December 31 balance
The RMD formula uses the account balance as of the close of business on December 31 of the preceding year.3 For a 2026 RMD, that is the balance on December 31, 2025. Each account has its own balance, so each account gets its own calculation.1,3
Step 3: Find your distribution period (the divisor)
Use the age you reach on your birthday in the distribution year. IRS Publication 590-B says that for 2026 calculations you use your age as of your birthday in 2026.3 Then look up the matching distribution period:
Uniform Lifetime Table (Table III): for owners whose spouse is not the sole designated beneficiary, or whose spouse is the sole beneficiary but not more than 10 years younger.3
Joint and Last Survivor Table (Table II): for owners whose spouse is the sole designated beneficiary and more than 10 years younger.3
Single Life Expectancy Table (Table I): used by certain beneficiaries after the owner’s death.3
Step 4: Divide
The RMD formula is the balance from Step 2 divided by the distribution period from Step 3.2,3 As a simple illustration of the math, every $100,000 of balance at age 73 (divisor 26.5) produces a required distribution of $3,773.58, by our calculation.6
The RMD Formula as a Percentage of Your Balance
Because the divisor shrinks as age rises, the share of the account that must come out grows each year. The table below converts selected Uniform Lifetime Table divisors into a percentage of the prior year-end balance.
| Age | Divisor | Share of balance | RMD per $100,000 of balance |
|---|---|---|---|
| 73 | 26.5 | 3.77% | $3,773.58 |
| 75 | 24.6 | 4.07% | $4,065.04 |
| 80 | 20.2 | 4.95% | $4,950.50 |
| 85 | 16.0 | 6.25% | $6,250.00 |
| 90 | 12.2 | 8.20% | $8,196.72 |
| 95 | 8.9 | 11.24% | $11,235.96 |
| 100 | 6.4 | 15.63% | $15,625.00 |
Assumptions: Divisors are from the IRS Uniform Lifetime Table for distribution years beginning on or after January 1, 2022.6 Percentages and per-$100,000 amounts are by our calculation (100 divided by the divisor, and $100,000 divided by the divisor), rounded to two decimal places. They illustrate the formula only and are not projections of any account.
This is a hypothetical situation used for education purposes only. The information does not represent a current client, and the results shown are hypothetical — they do not reflect actual results achieved by any client are not a guarantee of future performance. Actual results will vary based on an individual’s specific circumstances.
Required Minimum Distribution Calculation With More Than One Account
The required minimum distribution calculation is done account by account, but the IRS lets some accounts be combined when you withdraw:
IRAs: Calculate the RMD separately for each traditional IRA. You can then total those amounts and take the total from any one or more of the IRAs.1,3
403(b) contracts: The same approach applies among 403(b) contracts.1
401(k) and 457(b) plans: Each plan’s RMD must be taken from that plan.1
IRAs and employer plans: An RMD taken from an IRA does not satisfy the RMD from a retirement plan, and the reverse is also true.2
Details That Change the Math
Extra withdrawals do not carry forward. Taking more than the RMD in one year does not reduce the minimum required in future years.3
RMDs cannot be rolled over. Required minimum distribution amounts are not eligible for rollover treatment, including into another tax-deferred account.1,3
Still working. Employer plans can let participants delay RMDs until the year they retire unless they own more than 5% of the business sponsoring the plan. This exception does not apply to traditional, SEP or SIMPLE IRAs.1,4
First year timing. The first RMD can be delayed until April 1 of the year after you reach your applicable age; later RMDs are due by December 31 each year.1,2
What Happens If an RMD Is Missed
If less than the required amount is withdrawn, federal law imposes an excise tax of 25% on the shortfall.7 The rate drops to 10% if the shortfall is corrected within the correction window, which the IRS describes as within two years.2,7 The tax is reported on Form 5329, and the IRS may waive it for a reasonable error when the owner files Form 5329 with a letter of explanation.1
Frequently Asked Questions
Divide each account's balance as of December 31, 2025 by the distribution period for the age you reach on your birthday in 2026.3 Owners whose spouse is not a sole beneficiary more than 10 years younger use the Uniform Lifetime Table.3
The Uniform Lifetime Table divisor at age 73 is 26.5 for distribution years 2022 and later.6 That equals about 3.77% of the prior year-end balance, by our calculation.
Yes. The RMD is calculated separately for each traditional IRA, but the IRS allows the total to be withdrawn from any one or more of those IRAs.1,3 Employer plans such as 401(k) plans are handled plan by plan.1
No lifetime RMDs apply to Roth IRAs or to designated Roth accounts in 401(k) and 403(b) plans while the owner is alive.2 Beneficiaries who inherit those accounts are subject to the RMD rules.2
The applicable age is 73 for people who reach age 72 after 2022 and age 73 before 2033, and 75 for people who reach age 74 after 2032.4 By our calculation, that is age 73 for people born 1951 through 1959 and age 75 for those born in 1960 or later; proposed regulations would set age 73 for those born in 1959.5
Where This Fits Into a Broader Financial Plan
Required minimum distributions touch income, taxes and estate decisions at the same time. Moran Wealth Management is an independent, fee-only fiduciary: we do not earn commissions or receive product incentives. When RMD decisions involve your tax return or estate documents, we coordinate with your CPA and attorney; we do not provide legal or tax advice directly. Each professional retains responsibility for their own advice and work, and results can vary based on individual circumstances.
To review how required minimum distributions fit into your plan, schedule a complimentary consultation with a Moran Wealth Management advisor. Call 239-920-4440, or email info@moranwm.com.
Sources
[1] Retirement plan and IRA required minimum distributions FAQs, Internal Revenue Service
[2] Retirement topics: Required minimum distributions (RMDs), Internal Revenue Service
[3] Publication 590-B (2025), Distributions from Individual Retirement Arrangements (IRAs), Internal Revenue Service
[4] 26 U.S. Code § 401: Qualified pension, profit-sharing, and stock bonus plans, Legal Information Institute, Cornell Law School
[5] Required Minimum Distributions (Proposed Rules, REG-103529-23), Federal Register Vol. 89, No. 139, July 19, 2024, U.S. Government Publishing Office
[6] 26 CFR § 1.401(a)(9)-9: Life expectancy and Uniform Lifetime tables, Legal Information Institute, Cornell Law School
[7] 26 U.S. Code § 4974: Excise tax on certain accumulations in qualified retirement plans, Legal Information Institute, Cornell Law School
We do not provide tax or legal advice; please consult your CPA, attorney, or registered tax professional for individualized tax or legal advice.
This communication does contain content generated or assisted by artificial intelligence (AI). While reviewed for accuracy, AI-generated content may not fully reflect all nuances of your individual circumstances. Please consult your advisor directly for personalized guidance.