RMD Calculator: Planning Your Required Minimum Distributions

Introduction: The Real Human Problem

Once you reach age 73 (or 75 depending on your birth year under SECURE Act 2.0), the IRS mandates that you begin taking annual withdrawals from your traditional tax-deferred accounts. These are known as Required Minimum Distributions (RMDs). For seniors in Sandy and South Jordan, failing to take these distributions results in a steep 25% tax penalty.

Planning for your future in the Wasatch Front requires a strategy that accounts for local cost of living and specific lifestyle desires. Whether you enjoy skiing at Alta, hiking in the Cottonwood canyons, or raising a family in South Jordan, your financial roadmap should be built around your life—not just a generic set of numbers.

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How This Calculator Works (Simply Explained)

To get the most out of this tool, it is helpful to understand the key inputs that drive the results:

Account Balance: The total value of your traditional accounts as of December 31 of the previous year.
Birth Year: Used to determine your starting age and current life expectancy factor.
Uniform Lifetime Table: The IRS divisor used to calculate the distribution amount.

By adjusting these inputs, you can model different financial scenarios to see how subtle shifts in your savings rate or portfolio return can impact your long-term wealth.

Scenario: The Power of Planning in Action

Consider this hypothetical scenario: A 74-year-old resident in Sandy, UT, has a Traditional IRA balance of a hypothetical $500,000 on December 31. Under the IRS Uniform Lifetime Table, his distribution period divisor is 25.5. The calculator indicates his hypothetical RMD for the year is $19,607. This must be withdrawn and taxed as ordinary income before the end of the calendar year to avoid penalties.

This scenario highlights how consistent actions and a clear timeline can remove the guesswork from your finances, transforming abstract goals into a concrete roadmap.

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FAQ – Frequently Asked Questions

What age do RMDs start?

Under SECURE Act 2.0, RMDs start at age 73 for those born between 1951 and 1959, and age 75 for those born in 1960 or later.

What is the penalty for missing an RMD?

The IRS imposes a 25% excise tax penalty on the amount that should have been withdrawn but was not, though this can be reduced to 10% if corrected quickly.

Do Roth IRAs have RMDs?

Roth IRAs do not have RMDs during the lifetime of the original owner, allowing assets to compound tax-free indefinitely.

Beyond the Numbers: Why Fiduciary Advice Matters

While this calculator provides a helpful baseline, it only tells part of the story. Static online tools cannot account for:

Tax Location Strategies: Maximizing the balance between Roth, Traditional, and taxable brokerage accounts.
Utah-Specific Tax Rules: How state income tax and retirement exclusions impact your bottom line.
Asset Allocation vs. Risk Tolerance: Aligning your investments with your actual comfort level.

At Salt Lake Financial Planning, we specialize in providing fee-based fiduciary financial planning and investment management that looks at your entire financial life. We help you move past basic calculator math to build a personalized, tax-efficient strategy.

We worked with Dallas for a comprehensive financial plan. He took the time to understand all aspects of our current finances and our goals and dreams. He helped us see where we were doing well and how we could improve. Knowing the full picture and how to proceed so that we can reach our goals gave us peace of mind and confidence. Thank you so much Dallas!

Travis G

Dallas has consistently been an incredible resource, from everything from car insurance to budgeting to retirement planning. He truly cares & has a great way of communicating options & suggestions. I refer him to people all the time.

Jenelle K

These statements are testimonials by clients of the financial professional as of 05/30/2026. The clients have not been paid or received any other compensation for making these statements. As a result the clients do not receive any material incentives or benefits for providing the testimonials. These views may not be representative of the views of other clients and are not indicative of future performance or success.

Ready to take control of your financial roadmap? Schedule an Initial Strategy Meeting with Dallas Price today to discuss your goals in Sandy, Draper, or South Jordan.

Compliance Disclosures

Any perceived advice is general and broad in nature and not meant to substitute direct consultation and advising. Please contact the applicable professional to go over your situation. Schedule an Initial Strategy Meeting if you’d like more 1-1 advice.

Calculations are for illustrative purposes only, do not represent actual performance of any investment, and do not reflect taxes or advisory fees, which would lower returns.*