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⚙ Calculator coming soon — use the information below to calculate manually.
The IRS requires you to withdraw a minimum amount from your Traditional IRA and 401(k) each year starting at age 73 (changed from 70½ by SECURE Act 2.0). This is the government recouping taxes on the pre-tax contributions you made over your career. Failing to take your RMD results in a 25% excise tax penalty on the amount not withdrawn.
RMD = Account Balance on December 31 of prior year / IRS Life Expectancy Factor. The factor comes from the IRS Uniform Lifetime Table and decreases as you age. At 73, the factor is 26.5. At 80, it is 20.2. At 90, it is 12.2.
| Age | IRS Factor | RMD on $500,000 | RMD on $1,000,000 |
|---|---|---|---|
| 73 | 26.5 | $18,868 | $37,736 |
| 75 | 24.6 | $20,325 | $40,650 |
| 80 | 20.2 | $24,752 | $49,505 |
| 85 | 16.0 | $31,250 | $62,500 |
| 90 | 12.2 | $40,984 | $81,967 |
Qualified Charitable Distribution (QCD): Donate up to $105,000/year directly from IRA to charity — counts toward RMD but excluded from taxable income. Roth conversions before age 73: Converting to Roth before RMDs begin eliminates future RMD requirements on converted amounts. Timing strategy: Take RMD early in January to invest the after-tax proceeds for the full year. Delay strategy: You can delay your first RMD to April 1 of the year after turning 73 — but you must then take two RMDs in that year (your first-year RMD and that year's RMD).
Use this calculator as a starting point, not a final answer. Run three scenarios: pessimistic (lower returns, higher costs, worst-case tax rates), base case (your expected scenario), and optimistic (favorable conditions). The range between these three scenarios tells you how much uncertainty surrounds your plan and how much buffer you need.
Once you have your numbers, cross-reference them with complementary calculators. A mortgage payment should be checked against your overall budget and DTI ratio. A retirement projection should account for Social Security income, potential pension, and healthcare costs in retirement. Tax calculations should be checked against available deductions and credits you may qualify for. No single calculator captures everything.
Where you hold investments matters as much as what you hold. High-growth assets belong in Roth accounts where growth is tax-free. Income-producing assets like bonds belong in traditional 401(k) or IRA where taxes are deferred. Tax-managed index funds belong in taxable brokerage where you can harvest losses. This asset location strategy adds 0.2-0.4% annually to after-tax returns without changing your investments at all.
The lifetime value of proper tax planning for a median American household is approximately $150,000-300,000 in additional wealth at retirement — the difference between tax-smart and tax-naive investment management over 30 years. Most of this benefit comes from three decisions made once: choosing the right account types, maximizing employer match, and selecting low-cost index funds.
For retirement and tax calculations specifically, consider running this calculation once per year as your income, tax brackets, and contribution limits change. The IRS adjusts dozens of thresholds annually for inflation — limits that applied in 2023 differ meaningfully from 2026 figures. Bookmark this page and revisit each January after the new limits are announced.
Finally, remember that financial optimization is a long game. Improving your savings rate by 5%, reducing investment fees by 0.5%, and claiming every eligible deduction compound over decades into very large differences in final wealth. Small improvements made consistently outperform dramatic one-time decisions every time.