Edward Jones RMD Calculator: How to Determine Your Required Minimum Distribution

Planning for retirement requires understanding how and when to withdraw from tax-advantaged accounts. Required Minimum Distributions (RMDs) are mandatory withdrawals that begin at a certain age, ensuring that retirement savings are eventually taxed. Failing to take the correct RMD amount can result in significant penalties.

To simplify this process, tools like the Edward Jones RMD Calculator estimate withdrawal amounts based on IRS guidelines.

Using the Calculator

The Edward Jones RMD Calculator estimates required annual withdrawals based on IRS regulations. By entering details such as age and account balance, users receive a projected distribution figure that aligns with federal requirements, eliminating the need to manually reference IRS life expectancy tables and apply formulas.

Accuracy is essential, as discrepancies in data can lead to incorrect estimates. The IRS updates life expectancy tables periodically, and the calculator reflects these changes. Users should ensure the account balance entered is as of December 31 of the previous year, as this determines the required distribution.

Beyond calculating withdrawals, the tool aids financial planning by illustrating how distributions affect cash flow. Since RMDs increase taxable income, understanding the projected amount helps individuals anticipate tax liabilities and adjust their strategy. Some may reinvest excess funds in taxable accounts, while others allocate them toward expenses like healthcare or charitable contributions.

Eligible Accounts

Not all retirement accounts are subject to RMDs. Traditional IRAs, SEP IRAs, and SIMPLE IRAs require withdrawals once the account holder reaches the required age. Employer-sponsored plans like 401(k)s, 403(b)s, and 457(b) plans also mandate withdrawals unless an exception applies, such as continued employment with the plan sponsor.

Roth IRAs are exempt from RMDs during the account holder’s lifetime, making them useful for minimizing taxable income or leaving assets to heirs. However, Roth 401(k)s were previously subject to RMDs, a requirement eliminated in 2024 under the SECURE 2.0 Act. Those who had already been taking RMDs from a Roth 401(k) should review their plan’s rules to confirm whether withdrawals are still necessary.

Inherited retirement accounts follow different RMD rules depending on the beneficiary’s relationship to the original owner. Spouses who inherit an IRA can treat it as their own or roll it into an existing retirement account, delaying distributions if they choose. Non-spouse beneficiaries typically must withdraw all funds within ten years unless they qualify for exceptions, such as being a minor child, disabled, or chronically ill.

Key Factors in the Calculation

The required withdrawal amount depends largely on age. The IRS uses life expectancy tables to determine the distribution period, with different tables applying based on the account holder’s circumstances. The Uniform Lifetime Table is used by most retirees, while the Joint Life and Last Survivor Table applies if the sole beneficiary is a spouse more than ten years younger.

The withdrawal percentage increases with age, leading to larger distributions in later years. For example, someone turning 75 in 2025 would use a life expectancy factor of 24.6 under the Uniform Lifetime Table, requiring a withdrawal of about 4.07% of their account balance. By age 85, the factor decreases to 14.8, increasing the withdrawal rate to approximately 6.76%. This gradual increase ensures that retirement funds are drawn down over time, allowing the IRS to collect deferred taxes.

Managing multiple retirement accounts can complicate RMD calculations. Traditional IRAs can be aggregated, meaning the total required amount can be withdrawn from any one or combination of IRAs. However, 401(k) plans must have RMDs calculated and withdrawn separately. Those with multiple employer-sponsored plans must track and manage individual distributions to avoid penalties for under-withdrawals.

Tax Ramifications

Withdrawals from tax-deferred retirement accounts are taxed as ordinary income in the year they are taken, which can significantly impact an individual’s tax liability. Since RMDs increase taxable income, they may push retirees into a higher federal or state tax bracket. For example, a retiree with $60,000 in other taxable income who takes a $40,000 RMD would see their total taxable income rise to $100,000, potentially increasing their marginal tax rate.

RMDs can also affect Medicare premiums. The Income-Related Monthly Adjustment Amount (IRMAA) raises Medicare Part B and Part D premiums for individuals whose modified adjusted gross income (MAGI) exceeds certain thresholds. In 2024, single filers with MAGI above $103,000 and joint filers above $206,000 face increased Medicare costs. A large RMD could push a retiree over these limits, leading to higher healthcare expenses.

Distribution Schedules

Once the RMD amount is determined, retirees must decide how to structure their withdrawals. The IRS requires RMDs to be taken by December 31 each year, except for the first distribution, which can be delayed until April 1 of the following year. Delaying the first withdrawal defers taxes temporarily but results in two distributions in the same year, potentially increasing taxable income.

Retirees often choose monthly, quarterly, or annual withdrawals based on cash flow needs and tax planning. Spreading distributions throughout the year can help manage tax liability and avoid large lump-sum withdrawals that may trigger higher Medicare premiums or phaseouts for deductions and credits. Some financial institutions offer automated RMD services, ensuring compliance while maintaining a predictable income stream. Others prefer to take their entire RMD in one transaction, often at year-end, to maximize investment growth before withdrawing funds. The best approach depends on individual financial circumstances and tax strategies.