Required Minimum Distribution (RMD) Guide: Formula & Worked Example
Short answer
Yearly RMD for age 73+ using the IRS Uniform Lifetime Table. In the fixed example below, required withdrawal is 20,325.20. Your answer depends on the inputs and assumptions you choose.
Formula
RMD = prior Dec 31 balance ÷ IRS distribution period
Use the relationship above with consistent units. The inputs are age this year, balance on dec 31 last year. Use the input scale shown beside each field and keep time periods and units consistent. Only round the final result for display.
Worked example
- Age this year
- 75
- Balance on Dec 31 last year
- 500000
- Required withdrawal: 20,325.20
- Distribution period: 24.6
- Monthly equivalent: 1,693.77
Understanding the result
Yearly RMD for age 73+ using the IRS Uniform Lifetime Table. Start with the base example, then replace each value with the figure that matches your situation.
Age this year
The example uses 75 for age this year. This is an illustration, not a recommended value. Keep the unit and time period shown by the field.
Balance on Dec 31 last year
The example uses 500000 for balance on dec 31 last year. This is an illustration, not a recommended value. Keep the unit and time period shown by the field.
What the comparison means
The comparison changes only age this year, keeping every other example input fixed. This isolates that input's effect on the primary result. It does not predict future outcomes.
Rates, fees, eligibility, local tax rules and provider rounding can change the final amount. Reference tax and exchange-rate data may be outdated; verify the official source before deciding.
Comparison
| Scenario | Input | Result |
|---|---|---|
| Lower input | Age this year: 60 | RMD: Not required before age 73 |
| Base example | Age this year: 75 | Required withdrawal: 20,325.20 |
| Higher input | Age this year: 90 | Required withdrawal: 40,983.61 |
Common mistakes
- Using the wrong units for age this year.
- Comparing results while changing more than one input at a time.
- Rates, fees, eligibility, local tax rules and provider rounding can change the final amount. Reference tax and exchange-rate data may be outdated; verify the official source before deciding.
Checklist
- Confirm age this year.
- Confirm balance on dec 31 last year.
- Check the result against your source or provider.
Calculators Percentage Editorial Team
Calculator guides from the Calculators Percentage team. These introductory examples are educational, not professional advice.
Last reviewed:
Rates, fees, eligibility, local tax rules and provider rounding can change the final amount. Reference tax and exchange-rate data may be outdated; verify the official source before deciding.