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RMD basics

A simple introduction to required minimum distributions and why they matter.

Required minimum distributions matter because they can reshape retirement taxes whether you need the cash or not.

1

Guide section

What RMDs are

RMDs are mandatory withdrawals from certain tax-deferred retirement accounts once you reach the applicable age.

They are designed to force deferred savings back into taxable income over time.

2

Guide section

Why they matter

Large RMDs can push up taxable income later in retirement even if you do not need to spend the money.

That is one reason some households model Roth conversions before RMDs begin.

Bottom line

Where this guide should leave you

RMD planning is ultimately tax planning. Even a simple estimate can help you spot whether future withdrawals may become larger than expected.

Related calculators

Model this idea with your own numbers.

Withdrawals1 min

RMD

Estimate your RMD based on age, balance, and the Uniform Lifetime Table divisor.

Estimated RMD

$33,962

Tax Strategy3 min

Roth Conversion

Estimate the long-term tradeoff of paying tax now for future tax-free withdrawals.

Roth future value

$137,952

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