The RMD Formula Step by Step
Step 1: Find your December 31 balance from the prior year (from your year-end account statement). Step 2: Find your age as of December 31 of the current year (the year the RMD is due). Step 3: Look up your life expectancy factor in the appropriate IRS table. Step 4: Divide balance by factor. That is your minimum required distribution.
RMD calculation examples using Uniform Lifetime Table
| Account Balance (Dec 31, 2024) | Your Age in 2025 | IRS Factor (Uniform Table) | RMD for 2025 |
|---|---|---|---|
| $350,000 | 73 | 26.5 | $13,208 |
| $750,000 | 75 | 24.6 | $30,488 |
| $1,200,000 | 80 | 20.2 | $59,406 |
| $500,000 | 85 | 16.0 | $31,250 |
| $2,000,000 | 73 | 26.5 | $75,472 |
Which IRS Life Expectancy Table Applies to You?
Three IRS tables exist. The Uniform Lifetime Table applies to most traditional IRA owners. The Joint and Last Survivor Table applies when your only beneficiary is a spouse more than 10 years younger — it produces smaller RMDs. The Single Life Expectancy Table applies to beneficiaries of inherited IRAs.
If your spouse is your sole beneficiary AND is more than 10 years younger, you can use the Joint and Last Survivor Table which has longer divisors — resulting in smaller required RMDs. Example: age 73 with a 60-year-old sole beneficiary spouse: divisor is 30.5 (vs. 26.5 Uniform) = RMD is 13.5% smaller.
IRS table comparison and RMD impact
| Situation | Which Table to Use | Age 73 Factor | RMD on $500K vs. Uniform |
|---|---|---|---|
| Standard (most owners) | Uniform Lifetime Table | 26.5 | $18,868 |
| Sole beneficiary spouse 10+ yrs younger (age 75 vs 63) | Joint/Last Survivor Table | ~30.5 | $16,393 (saves $2,475) |
| Inherited IRA (beneficiary) | Single Life Expectancy Table | Varies by age | Typically higher % |
First-Year RMD Special Rules
Your very first RMD (at age 73 or 75) has a special deadline option: you can delay it until April 1 of the following year. However if you do this you must take TWO RMDs in that following year — the delayed first-year RMD and the current-year RMD. This often creates higher taxable income in the second year. Most advisors recommend taking the first RMD by December 31 of the initial year to avoid double income.
- Use December 31 prior-year balance for all RMD calculations
- Take your first RMD by December 31 of the year you turn 73 (or 75) to avoid double-RMD year
- If you have multiple IRAs: calculate each separately then withdraw total from any combination
- Save your December 31 account statements — they are your documentation for the calculation
Calculate Your Exact RMD Amount
Enter your December 31 balance and age to get your precise RMD obligation for the current year.