Step 1: Gather All Account Balances (December)
Step 1: In December of the year you turn 73 (or before) gather December 31 statements for every traditional IRA, SEP-IRA, and SIMPLE IRA. If you have multiple accounts list each one. You will need each balance to calculate each account’s RMD separately.
Complete RMD action plan step by step
| Step | Action | When | Time Required |
|---|---|---|---|
| 1. Gather balances | Save Dec 31 statements for all IRAs | December of RMD year | 30 minutes |
| 2. Calculate RMD | Balance ÷ IRS factor for your age | January of RMD year | 10 minutes |
| 3. Decide QCD amount | Identify charitable giving goals | January | 15 minutes |
| 4. Contact custodian | Request RMD distribution with withholding | January–October | 20 minutes |
| 5. Set reminders | Calendar for Dec 1 annual deadline check | Once | 5 minutes |
| 6. File taxes | Report RMD on 1040; QCDs on Form 8606 lines | April | With tax return |
Step 2: Calculate Your RMD Amount
For each traditional IRA account: find the December 31 balance from the prior year, look up your age as of December 31 of the current RMD year, find the IRS Uniform Lifetime Table factor for that age, and divide balance by factor. Add up all account RMDs for your total annual obligation.
Account 1 balance Dec 31, 2024: $450,000. Account 2 balance: $300,000. Total: $750,000. Age on Dec 31, 2025: 73. IRS factor: 26.5. Total RMD: $750,000 ÷ 26.5 = $28,302. Can take from any combination of the two accounts totaling $28,302.
Sample two-account RMD calculation
| Account | Dec 31 Balance | Your Factor (Age 73) | This Account RMD | Can Withdraw From |
|---|---|---|---|---|
| Traditional IRA #1 | $450,000 | 26.5 | $16,981 | Yes — any amount up to full RMD |
| Traditional IRA #2 | $300,000 | 26.5 | $11,321 | Yes — any amount up to full RMD |
| Total RMD obligation | $750,000 | 26.5 | $28,302 | From any combination of accounts |
Steps 3-6: QCDs, Withholding, and Automation
Step 3: Decide if any of your RMD should go to charity via QCD — coordinate with your custodian. Step 4: Request the remaining (non-QCD) RMD distribution with 20%-30% tax withholding. Step 5: Set a December 1 annual calendar reminder. Step 6: Consider setting up automatic annual distributions for future years.
- Gather Dec 31 balances for all traditional IRAs every December
- Calculate RMD for each account using IRS table for your age
- Direct charitable giving through QCDs first before taking regular distributions
- Request non-QCD distribution with 20%-30% withholding from custodian
- Set December 1 annual reminder — never miss the December 31 deadline
- Consider automatic annual distribution setup for future simplicity
Calculate Your First RMD Amount
Enter your total account balance and age to see your exact 2025 RMD obligation.