Good Deals
RMD Projection

The IRS knows when it gets paid.

RMDs aren't optional. Starting at age 73, the IRS forces a percentage of your Traditional IRA into taxable income — every year, growing each year, until you die.

Required Minimum Distributions are calculated by dividing your year-end Traditional IRA + 401(k) balance by an IRS-published divisor (the Uniform Lifetime Table). The divisor shrinks each year, so the forced percentage grows. By age 90 you're being forced to take 8%+ of your balance. This calculator projects your year-by-year RMDs, the lifetime tax cost, and the alternative if you'd converted instead.

RMD projection calculator

Input your current pre-tax retirement balance and assumptions. We'll project RMDs from age 73 through 90 and show what conversion would have done.

Combined across all pre-tax retirement accounts.
$
yrs
Most retirees with $1M+ Traditional balances land 24-32%+ once RMDs stack on Social Security, pensions, dividends. Plus state tax + IRMAA.
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Long-run portfolio return assumption. Conservative: 5%. Moderate: 6%. Growth: 7-8%.
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Source: IRS — Required Minimum Distributions (RMDs) · IRS Publication 590-B (Uniform Lifetime Table) · SECURE Act 2.0 (RMD age 73, 75 in 2033) · Cornell LII — 26 U.S.C. §401(a)(9)

Get your full Pre-Retiree Tax Playbook

RMDs are one of 12 retirement-tax variables that compound. The playbook covers: Roth Conversion Ladder, IRMAA cliffs, Social Security claiming, asset location, drawdown sequencing, QCDs, and inherited-IRA planning under SECURE Act. We email the PDF.

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Run this against your actual numbers

This projection shows what RMDs do if nothing changes. The Roth Conversion Ladder math + asset-location optimization + QCD planning together typically cut lifetime RMD tax 30-50%. A 15-min Discovery Call covers your specifics.

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What RMDs actually are

The IRS allowed you to defer income tax on every dollar that went into your 401(k), Traditional IRA, SEP, or SIMPLE during your working years. But the deal isn't permanent. Starting at age 73 (SECURE Act 2.0; rising to 75 in 2033), the IRS forces you to begin drawing the money down — and pay tax on every distribution at your then-current bracket.

The formula:

RMD = (12/31 prior-year balance) ÷ (Uniform Lifetime Table divisor for your age)

The Uniform Lifetime Table divisor shrinks each year. At age 73 it's 26.5 (so RMD ≈ 3.77% of balance). At 80 it's 20.2 (~4.95%). At 90 it's 12.2 (~8.20%). At 95 it's 8.9 (~11.24%). The forced percentage grows faster than most balance-portfolios can grow back.

Why RMDs are the IRS's revenge

Quick math: $2M Traditional IRA at age 73 → first RMD $75,500. At 32% bracket → $24,160 in federal tax that year alone. Compounds annually. Over 20 years, lifetime RMD tax can easily exceed $1M.

The escape routes

  • Roth Conversion Ladder during the retirement-to-73 window. See the calculator. Pay 22-24% now vs 32-37% later, and Roth has no RMD.
  • QCDs (Qualified Charitable Distributions) — up to $108K/yr (2026) from your IRA can satisfy your RMD without counting toward MAGI. The most underused tool in retirement planning.
  • Still-working exception — if you're still working past 73 and don't own 5%+ of the company, you can delay RMDs on your current 401(k) (but not on other accounts).
  • Asset location — keeping high-growth assets in Roth and tax-loss-harvest-able funds in taxable lets the Traditional shrink while your other balances grow.
  • QLAC (Qualified Longevity Annuity Contract) — let up to $200K (2026) of IRA balance defer RMDs until as late as age 85, in exchange for guaranteed lifetime income.

Common questions

What's the actual RMD age now?

73 for anyone born 1951-1959. 75 for anyone born 1960 or later (effective for those reaching 75 in 2033 onward). Under SECURE Act 2.0. Inherited IRAs may have different rules under the 10-year drain.

Does the Roth IRA have an RMD?

Not during your lifetime — no RMD on Roth IRAs. SECURE 2.0 also eliminated lifetime RMDs on designated Roth 401(k) accounts starting 2024. Inherited Roth IRAs still subject to the 10-year drain for non-spouse heirs, but distributions are tax-free.

What if I have multiple IRAs?

Calculate RMD for each account separately, but you can aggregate the IRA RMDs and take them from any single IRA. 401(k) RMDs cannot be aggregated — each plan's RMD must come from that plan. Solo 401(k), SEP, SIMPLE all aggregate as IRAs.

How does the QCD save tax?

A Qualified Charitable Distribution sends up to $108K/yr (2026) directly from your IRA to a qualified charity. It counts toward your RMD requirement but is excluded from your gross income. So your AGI is lower, your IRMAA tier is lower, your Social Security taxable portion is lower, and you still got the charitable benefit. Significantly better than taking the RMD and then deducting the charitable contribution.

What if I miss an RMD?

The IRS assesses a 25% excise tax on the missed amount (was 50% before SECURE 2.0). Reduced to 10% if corrected within 2 years. File Form 5329 to report and request waiver. Custodians (Schwab, Fidelity, etc.) typically alert you in late November — set the distribution to auto-process December 15-20 to avoid issues.

Does my surviving spouse face the same RMDs?

Spousal inherited IRAs can be rolled into the surviving spouse's own IRA — restart the clock at their own age 73. Non-spouse heirs (children, etc.) face the 10-year drain rule under SECURE Act, which often forces large taxable distributions during their working years.

Can I take more than the RMD?

Yes — RMD is a floor, not a ceiling. You can take more in any year. Strategic over-distribution can fill a low-bracket year (between retirement and Social Security claiming, for example) and reduce the balance subject to future RMDs.

Get this run against your full picture

The Foundation Review combines RMD projection + Roth Conversion + IRMAA + Social Security claiming + QCD planning + asset location into a single 11-year plan calibrated to your specific balances and timeline. 90 minutes with Andrew + written report.

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About Good Deals

Good Deals is the planning workbook + advisory practice of Andrew Escher, CFA Charterholder + Investment Adviser Representative based in Austin, TX. Independent stack: Altruist for investment custody, BackNine for insurance placement, Good Deals for the planning layer that ties them together. We work with pre-retirees, HNW executives, and business owners who want structural tax + retirement planning — without the typical AUM-fee pitch.