Calculating Your RMD

Written By Finn Price

At age 73 or 75 (based on your DOB), you're required to start taking money out of your 401(k). These mandatory withdrawals are called Required Minimum Distributions, or RMDs.

Think of an RMD as the government's way of saying, “You’ve delayed taxes long enough—now it’s time to start paying.”

Here’s how you calculate your RMD:

You’ll need:

  • Your 401(k) balance as of December 31 of the previous year

  • A divisor from the IRS Uniform Lifetime Table

The formula:

Account balance ÷ Divisor = RMD

That’s the amount you must withdraw for the year to stay compliant and avoid penalties.

2025 Uniform Lifetime Table

Finn Price
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