Calculate Your Required Minimum Distributions and Explore Your Best Retirement Solutions.
Once you turn 73, the IRS requires you to begin withdrawing money from your 403(b)—whether you need the income or not. These Required Minimum Distributions (RMDs) are mandatory, taxable, and can impact everything from your tax bracket to your Medicare premiums. That’s why smart retirees plan ahead. Use this calculator to estimate your RMDs—then follow these two-phase strategies to reduce the damage.
How To Preserve Your 403(B) And Withdraw RMDs At The Same Time
Why This Calculator Is Important
- Avoid Penalties: Calculating RMDs accurately helps prevent hefty IRS penalties for not withdrawing the required minimum amount.
- Plan Tax Implications: Understanding your RMDs allows you to plan for the tax impact, helping you manage your retirement income efficiently.
- Optimize Cash Flow: Knowing your RMDs ensures you have the necessary funds available to meet your financial needs without depleting your retirement savings too quickly.
- Evaluate Retirement Strategies: It helps you assess whether to transfer or roll over retirement accounts to minimize taxes and maximize income.
- Make Informed Decisions: Provides insight into the best solutions for your unique retirement, ensuring you are financially prepared.
- Explore Options: Use the results to shop for annuities or other retirement products with our brokers, ensuring you get the best terms before you buy.
- No Obligation: Use the calculator freely to understand your RMDs without any commitment to take immediate action.
✅ Before You Take Your First RMD: Reduce Future Tax Burdens
1. Use a QLAC (Qualified Longevity Annuity Contract)
$210,000 per individual across all QLAC premiums in 2026. Official sources: IRS guidance.
- Reduces taxable RMDs today
- Delays income to when you may need it more
- Creates guaranteed lifetime income later in life
You must set up the QLAC before your first RMD. After that, you’re locked out.
QLAC status turns on contract requirements, the aggregate premium limit, eligible funding source, and commencement no later than age 85—not a rule that the first RMD permanently closes eligibility. Official sources
The applicable age is 73 for people who attain age 73 before 2033; it is 75 for people who attain age 74 after 2032. Workplace plans may also allow the still-working delay for non-5% owners; IRAs do not. Official sources
2. Convert to a Roth IRA (Gradually)
If you’re still under age 73, consider doing partial Roth conversions from your 403(b) or a rollover IRA. This shrinks the pre-tax balance subject to future RMDs.
- Pay tax now at lower rates
- No RMDs ever from Roth IRAs
- Future withdrawals are tax-free
3. Roll Over to an IRA for More Flexibility
Rolling your 403(b) to an IRA may allow better control over investments, fees, and Roth conversion strategies. IRAs also offer Qualified Charitable Distributions (QCDs) once you reach age 70½.
403(b) plans don’t allow QCDs directly. You must roll over to an IRA first.
✅ After You’ve Taken the RMD: Use It Strategically
Once you’ve withdrawn your RMD, you’re taxed on it, but you still have control over what to do next.
Will RMD Withdrawals Reduce Your Guaranteed Annuity Lifetime Income?
1. Buy a Deferred or Immediate Annuity
Turn taxable income into guaranteed lifetime income. This helps stabilize your retirement cash flow and reduce future reliance on market returns.
2. Fund Life Insurance for Legacy or Tax Efficiency
Permanent life insurance can take taxable dollars and turn them into tax-free wealth for your heirs. Great for legacy planning or replacing the taxes lost to RMDs.
3. Invest in a Tax-Efficient Brokerage Strategy
Reinvest your RMD in a taxable account using low-turnover ETFs, municipal bonds, or tax-managed funds to limit future tax drag.
4. Fund Long-Term Care Coverage
Use the RMD to prepay a hybrid LTC policy or an annuity with long-term care benefits. That way, your forced withdrawal becomes future healthcare protection.
5. Gift to Family or Charity
Use your after-tax RMD to make annual gifts or establish a donor-advised fund. You’ve already paid tax—now use the money to reduce your taxable estate or support causes that matter to you.
Final Note: You Can’t Avoid RMDs—But You Can Control the Fallout
The IRS doesn’t give you a choice on whether to take your RMD, but you do have control over how much you pay in taxes, what happens to the money afterward, and how it impacts your future.
Use this calculator to get your number, then book a free consultation with The Annuity Expert. We’ll help you:
- Shrink future RMDs
- Use current RMDs more efficiently
- Coordinate annuities, Roth strategies, and legacy tools—all tailored to your retirement plan
Estimate 403(b) RMDs
Feel free to contact us for help or advice on required minimum distributions. The service is free of charge.