How Much Will My RMD Be if I Have $1 Million in My Retirement Account?

By Dana George – Mar 11, 2026 at 4:16AM ESTKey PointsThe more money you have in your retirement account and the older you are, the higher your RMD.Failure to take an RMD by the due date can result in a penalty of 25% on the amount not withdrawn.You're not limited to withdrawing your RMD only. An RMD is the minimum you must take.You've tucked away $1 million for retirement and understand that you'll have to begin taking required minimum distributions (RMDs) at age 73 (or 75 if you were born in 1960 or later). As you plan for retirement, though, you're not quite sure how much those RMDs will be. How much must you withdraw from your retirement account each year to satisfy Social Security Administration (SSA) requirements? The basic formula for figuring your RMD amount boils down to this: Your account balance divided by your life expectancy factor. Here's what that means in plain English. Image source: Getty Images. Age matters Let's say you're turning 73 this year. The IRS' life expectancy table gives you a denominator of 26.5. Dividing $1 million by 26.5 yields $37,736. Your RMD for the year is therefore $37,736. If you were turning 75 this year, your RMD would increase to $40,650, and by age 80, it would be $49,505. As you grow older, you have fewer projected years to live. This means you're dividing your account balance by a smaller number, resulting in a higher taxable withdrawal amount. Calculating your own RMD, step by step If you'd like to calculate the amount you must withdraw, here's how it's done: Locate your account balance on Dec. 31 of the prior year. Make a note of how old you'll be on your birthday in the current year. Look at the life expectancy factor in the appropriate IRS table. Divide your account balance by the life expectancy factor. Which accounts do RMDs apply to? You use a retirement account to help you plan for retirement. The government uses RMDs to collect taxes on money you contributed pre-tax while you were working. Here's a list of the types of accounts RMDs cover: 401(k) plan 403(b) plan 457(b) plan Traditional IRAs Rollover IRAs SEP IRAs SARSEPs SIMPLE IRAs Profit-sharing plans Important things to know about RMDs The more you know about how RMDs work, the less intimidating they seem. Here are three other facts that may come in handy: RMDs are not all you can withdraw: While RMDs represent the least you must withdraw, you can always withdraw more if it's needed. They're not kidding about the due date: You don't necessarily have to wait until Dec. 31 of the current year to take your RMD. However, Dec. 31 is a hard deadline, and missing it can result in a 25% penalty on the amount not withdrawn. The year you turn 73 (or 75 if you were born in 1960 or later): The first year you're required to make an RMD is the only year it's not due by Dec. 31. If you'd rather wait, you have up to April 1 of the following year to make the required withdrawal. If you do wait, you'll still have another annual withdrawal due by Dec. 31, meaning you'll make two withdrawals in one year. You may want to determine whether taking two withdrawals in one year affects your taxes. Whether you have a self-employed retirement account or built your account some other way, RMDs are Uncle Sam's way of getting the taxes he's owed. However, RMDs are also a great way to help you finance the life you want to lead in retirement.Read NextMar 11, 2026 •By Adam LevySocial Security Held Up Better Than Anticipated in 2025, But Major Changes Are Coming SoonMar 11, 2026 •By Maurie BackmanWhy the 2026 Social Security COLA Is Outpacing Inflation -- and Why That May Not LastMar 10, 2026 •By Maurie BackmanBuying a Home in Retirement Just Got Less Expensive -- but Is Now the Right Time?Mar 10, 2026 •By Maurie BackmanMedicare Updates: What Retirees Need to Know in March 2026Mar 10, 2026 •By Katie BrockmanClaiming Social Security at 62? How to Know If the Math Works for You.Mar 10, 2026 •By Christy Bieber3 Medicare Rules All Retirees Need to Know in 2026About the AuthorDana George is a contributing retirement and Social Security expert at The Motley Fool. Previously, Dana spent five years writing for Motley Fool Money and 20 years as a newspaper reporter. She is also the author of four published novels. She holds a bachelor’s degree in business management from Spring Arbor University. .TMFByGeorge