RMD Calculator
Enter the year-end retirement account balance and the life-expectancy factor for the age to compute the required minimum distribution (RMD), the average monthly withdrawal and the withdrawal as a percent of the balance.
Input Data
Results
At a glance:The RMD is the minimum yearly withdrawal from a US tax-deferred retirement account. Annual RMD = prior year-end balance ÷ life-expectancy factor (IRS Uniform Lifetime Table). Monthly RMD = annual RMD ÷ 12; withdrawal rate = annual RMD ÷ balance.
Formula
Annual RMD = account balance ÷ life expectancy factor.
Monthly RMD = annual RMD ÷ 12.
Withdrawal rate = annual RMD ÷ balance × 100.
$$\text{RMD} = \dfrac{\text{Account Balance}}{\text{Life Expectancy Factor}}$$$$\text{Monthly} = \dfrac{\text{RMD}}{12}$$$$\text{Withdrawal Rate} = \dfrac{\text{RMD}}{\text{Balance}}\times 100\%$$How to Use
- Enter the year-end account balance.
- Enter the life expectancy factor for the age.
- Read the annual RMD, monthly withdrawal and rate.
FAQ
What is an RMD, and does Hong Kong have this rule?
An RMD (required minimum distribution) is a US tax rule: from age 73, retirement-account holders must withdraw at least a set amount each year and pay tax on it, so the funds cannot be deferred indefinitely. Hong Kong has no forced minimum withdrawal — MPF can be taken as a lump sum or in instalments from age 65, on your own schedule. But planning the annual withdrawal amount still matters; this calculator is a useful reference for withdrawal pace.
Where does the life-expectancy factor come from, and what should I enter?
The factor is from the IRS Uniform Lifetime Table (from 2022), given by age. Common values: 73→26.5, 75→24.6, 80→20.2, 85→16.0, 90→12.2. The older you are, the smaller the factor and the higher the withdrawal rate. Just enter the figure matching the holder's age.
Why does the withdrawal rate rise with age?
Because the factor approximates the remaining expected withdrawal years. The older you are, the fewer remaining years (smaller factor); dividing the same balance by a smaller factor gives a higher withdrawal amount and rate. The tax code uses this to ensure the retirement fund is drawn down and taxed over the remaining lifetime rather than deferred.
Can I withdraw more than the minimum?
Yes. The RMD is only a floor; you may withdraw more for living costs or tax planning. But in the US, withdrawing below the RMD triggers a penalty on the shortfall. Hong Kong has no such penalty, so the amount is entirely up to your retirement cash-flow plan; this calculator's minimum can serve as a baseline for 'how much to withdraw so you are not too conservative'.
How do I use this result to plan retirement cash flow?
Divide the annual withdrawal by 12 for a monthly retiree cash-flow baseline. Recompute once a year with the latest year-end balance and the new factor, and consider an annuity to lock in lifetime income, balancing 'not exhausting the principal too fast' with 'maintaining steady living expenses'. For accumulation-phase estimates, see our Retirement Savings and 401(k) calculators.
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References
This calculator's content is reviewed by our Licensed Financial Planning team. Results are for reference only; please refer to the relevant authorities for the official figures.