The short answer
Someone born in 1955 with a $500,000 account growing at 5% won't owe an RMD until age 73 (2 years from now, under SECURE Act 2.0). By then the balance is projected to reach about $551,250, and dividing by the age-73 factor of 26.5 from the IRS Uniform Lifetime Table gives a first-year RMD of $20,801.89.
Key takeaways
- RMD start age depends on birth year: 73 for those born 1951–1959, 75 for 1960 and later — someone born in 1955 has until age 73.
- The required percentage rises every year even if your balance doesn't grow: the Uniform Lifetime Table factor drops from 26.5 at age 73 to 25.5 at 74 to 24.6 at 75, pushing up the required withdrawal rate each year.
- A 20-year projection on $500,000 at 5% growth shows cumulative RMDs of $546,690.02 — more than the original balance — while the account still holds roughly $474,492.85 at the end of the projection, because growth outpaced withdrawals in the earlier years.
- Roth IRAs are not subject to RMDs during the original owner's lifetime, which is a key reason some savers convert a portion of a Traditional IRA to a Roth before RMDs begin.
How the RMD formula works
Balance at age 73 = $500,000 × (1.05)^2 = $551,250
RMD = balance ÷ IRS distribution period = $551,250 ÷ 26.5 = $20,801.89
Every RMD calculation starts with the account's balance at the end of the prior year, divided by a life expectancy factor the IRS publishes in the Uniform Lifetime Table. That factor is not your actual life expectancy — it is a standardized number that decreases every year (27.4 at 72, down to 26.5 at 73, 25.5 at 74, and so on), which means the required withdrawal percentage climbs with age even if your balance never changes. At age 73 the required withdrawal is about 3.8% of the balance; by the late 80s it is closer to 7–8%.
Why RMDs can outlast a 20-year projection
| Age | RMD | Balance After RMD & Growth |
|---|---|---|
| 73 | $20,801.89 | $556,970.52 |
| 79 | $27,150.75 | $573,016.55 |
| 85 | $34,587.32 | $544,750.35 |
| 90 | $40,348.03 | $474,492.85 |
At a 5% assumed return, the balance actually keeps growing for the first several years of RMDs, since 5% growth on the full balance outpaces a withdrawal rate that starts around 3.8%. The balance peaks around age 79 near $573,000 before the rising required percentage gradually overtakes growth. Across the full 20-year projection modeled here, cumulative RMDs total $546,690.02 — more than the original $500,000 — while the account still holds close to $474,492.85. This is why RMDs, while mandatory, do not necessarily deplete an account quickly when growth is reasonably strong relative to the withdrawal schedule; a lower assumed return or an older starting age would draw the balance down faster.
Related calculators
- IRA Calculator — project growth in the years leading up to your first RMD.
- Roth IRA Calculator — model an account type that isn't subject to lifetime RMDs.
- 401(k) Calculator — see how a workplace plan grows before RMDs begin.