RMD Tax Cost Estimator
See what the IRS will collect from your pre-tax accounts — across your lifetime and your heirs. Adjust the sliders to personalize the two-generation tax projection.
Your Assumptions
Two-Generation Tax Projection
What Doing Nothing Actually Costs
$1,910,120
IRA Balance at RMD Start (Age 73)
$593,477
Your Cumulative Tax (Ages 73–95)
$572,423
Heirs' Tax (10-Year SECURE Act Liquidation)
$1,165,900
Grand Total Two-Generation Tax Burden
69% of the original $1,700,000 IRA consumed by taxes across two generations
Think of a traditional IRA as a shared account — one portion belongs to you and your heirs, the rest is reserved for the IRS at whatever rate applies when the money comes out. The Roth conversion window closes at 73 when RMDs become mandatory. The two years immediately before that are the last real opportunity to shift the outcome. Every year of inaction compounds the exposure.
Annual RMD Amount & Cumulative Tax — Ages 73 to 95
First RMD at 73: $72K. By age 95: $185K annually — forced income, every year, whether needed or not.
Inherited IRA — 10-Year SECURE Act Forced Liquidation @ 37% Bracket
Your heirs don't choose when or how much to take. The IRS does. Every dollar comes out as ordinary income at their bracket — not capital gains.
Total Tax Paid Across Two Generations — Running Total
Same $1,700,000 IRA. 69 cents of every original dollar eventually paid in taxes across two generations.
Educational estimates only. Projections use IRS Uniform Lifetime Table III divisors per SECURE 2.0. Equal annual heir distributions are assumed for the 10-year SECURE Act window. Actual outcomes depend on tax law changes, investment returns, withdrawal timing, and individual circumstances. Consult a qualified tax and financial planning professional before making decisions.
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