Guide
Turning retirement savings into income: use three calculations without confusing their jobs
Retirement savings turn into income through several different numbers, and each one answers a different question. One number is what you would like to spend. One is what a rate applied to a portfolio produces. One is the minimum the IRS requires you to withdraw from certain accounts. One is the Social Security benefit you were told to expect. Mixing them up leads to double counting, or to treating a calculator as a paycheck plan. This guide shows what each of Valora's three calculators does, what it leaves out, and a worksheet for keeping the numbers apart. It does not recommend a withdrawal rate, an account order or a spending level, and it does not say how long money will last.
Key takeaways
- Valora's withdrawal amount calculator multiplies a portfolio value by a rate you type in. It does not find a safe rate and does not model markets, inflation or how long you live.
- The IRS says a required minimum distribution (RMD) is the minimum amount you must withdraw from certain accounts each year, and that you can withdraw more. It is a tax requirement, not a spending target.
- A planned withdrawal and an RMD from the same account are two ways to read one account's cash out. Do not add them together without checking.
- Desired spending, gross withdrawals, tax withheld, spendable cash and cash already received are five different lines. Keep them on separate rows.
- For Social Security, use your own Social Security Administration (SSA) estimate. A calculator result is not your benefit.
This guide is for US readers. It is educational, not individual investment, tax or legal advice. Valora is not a registered investment adviser and is not arranging advisor matches or introductions at this time. No withdrawal rate, account order, claiming age or income level is recommended here.
What each calculation does
Withdrawal amount. Valora's withdrawal amount calculator multiplies the portfolio value you enter by the rate you enter. It shows an annual figure and a monthly figure. That is all. The rate is your input, so the result says nothing about whether the rate is sensible. For the factors that move a withdrawal rate, see Valora's insight on what a realistic withdrawal rate looks like now.
Required minimum distribution. Valora's RMD estimate calculator divides your account balance on December 31 of last year by a divisor from the IRS Uniform Lifetime Table, using the age you enter. The IRS describes the same method: the balance at the end of the preceding year divided by a distribution period from the table. The IRS says to use a different table if your sole beneficiary is a spouse more than 10 years younger, and another table for inherited accounts. Valora's calculator uses only the Uniform Lifetime Table, so it does not cover those cases or Roth IRAs.
Social Security. Valora's Social Security break-even calculator compares claiming at 62 with claiming at 70 for a full retirement age of 67. It ignores cost-of-living adjustments, taxes, spousal benefits and the time value of money. It does not tell you your benefit. Your own SSA estimate does that.
Which accounts have required withdrawals
The IRS says RMD rules apply to traditional IRAs, SEP IRAs, SIMPLE IRAs and workplace plans such as 401(k), 403(b) and 457(b) plans. It says they do not apply to Roth IRAs or designated Roth accounts while the owner is alive. Withdrawals are included in taxable income, except for any part that was taxed before or that can be received tax-free.
Some details differ by account. The IRS says an IRA owner calculates the RMD separately for each IRA but can take the total from one or more of them, while 401(k) and 457(b) plan RMDs must be taken separately from each plan. It also says participants in a workplace plan can delay RMDs until the year they retire, unless they own 5% or more of the sponsoring business. Ask your plan administrator or tax professional which rules apply to each of your accounts.
When required withdrawals start
The IRS says you generally must start RMDs at age 73. The federal regulation on required beginning dates, 26 CFR 1.401(a)(9)-2(b)(2), sets the applicable age by date of birth. It says that for an employee "born on or after January 1, 1951, but before January 1, 1959, the applicable age is age 73," and that for an employee "born on or after January 1, 1960, the applicable age is age 75." The paragraph between those two, for people born in 1959, reads "[Reserved]" in the version Valora read. The IRS preamble to the final regulations (Internal Revenue Bulletin 2024-33) lists the same two bands and also does not list 1959. This guide therefore does not state a rule for people born in 1959. If you were born in 1959, ask the IRS or a tax professional what applies.
The IRS also says you can delay the first RMD until April 1 of the following year, with the second due by December 31 of that same year. It says the penalty for missing an RMD may be an excise tax of 25% of the amount not taken, or 10% if the shortfall is corrected within two years.
A fictional example: five lines that look alike and are not
Pat turns 75 this year. This example is invented. Every number is made up to show arithmetic, and none of it is a recommendation.
Pat has a traditional IRA that held $600,000 on December 31 last year, Social Security of $1,900 a month and spending of about $5,000 a month.
- Pat types $600,000 and a rate of 3.5% into the withdrawal calculator. It shows $21,000 a year, about $1,750 a month. Pat chose the rate. The calculator did not.
- Pat types age 75 and $600,000 into the RMD calculator. The divisor for 75 is 24.6, so it shows $24,390 ($600,000 divided by 24.6). The IRS's Publication 590-B uses the same 24.6 divisor for a 75-year-old in a 2026 example.
- The two results are not additions. The RMD is the minimum for that account. The $21,000 is below it. So the rate-based figure cannot be the whole story for this account. Adding $21,000 and $24,390 would count one account twice. Pat asks the custodian how the year's withdrawals are counted toward the RMD.
- Social Security is $1,900 a month, or $22,800 a year, if Pat's SSA statement says so.
- Using the RMD alone, gross income from these two sources would be $22,800 plus $24,390, or $47,190. Pat's spending of $60,000 leaves $12,810 uncovered before tax. That gap is a question to take to a professional. It is not an instruction to withdraw more.
Tax withheld and spendable cash are still blank for Pat, because they depend on facts the calculators never see.
The cash-flow worksheet
This is Valora's own worksheet. It is not a government form. Use one row per source, and mark each assumption open until it is confirmed.
| Income source | Gross annual amount | Actual timing (when cash arrives) | Tax or coverage question | Source of the number | Open assumption |
|---|---|---|---|---|---|
| Social Security | From your SSA statement | Monthly, generally paid in the month after the effective month (SSA) | Is any of it taxed? Ask a tax professional | Your SSA record | |
| Required minimum distribution | RMD estimate | By the IRS deadline for that year | Withholding, and which account | Prior December 31 balance and table | |
| Planned withdrawal | Portfolio times your chosen rate | When you set it up | Tax on the withdrawal | Your own chosen rate | |
| Pension or other | Plan statement | Per plan terms | Survivor options, taxes | Plan documents |
Then keep five totals apart. Desired spending. Gross withdrawals. Tax withheld. Spendable cash. Cash already received so far this year. Write "not confirmed" where you do not have a statement.
Mistakes the worksheet is meant to catch
- Treating a calculator result as a paycheck. The withdrawal calculator is arithmetic and nothing more.
- Adding an RMD on top of a withdrawal from the same account.
- Using the Uniform Lifetime Table for an inherited account or for a spouse more than 10 years younger. The IRS names other tables for those.
- Counting gross withdrawals as spendable cash before tax.
- Using a calculator's Social Security figure instead of your own SSA estimate.
Documents to gather
- Year-end statements from every traditional IRA and workplace plan, showing the December 31 balance.
- Your SSA statement or the amount on your award letter.
- Pension or annuity statements, if any.
- The account type and any beneficiary details for each account.
- Your recent actual spending, not an estimate.
Bottom line
Use each calculator for its one job. The withdrawal calculator shows a rate times a portfolio. The RMD calculator shows a minimum for one kind of account. The Social Security figure comes from your own record. Put them on separate rows, mark what is unconfirmed, and bring the open rows to a tax professional or adviser who can use your real facts.
Want help applying this to your own numbers?
Tell us what you are trying to figure out. Valora reviews inquiries and emails next steps; we are not arranging advisor matches or introductions. Do not submit confidential financial documents.
Common questions
Can a calculator tell me how much I can safely withdraw?
No. Valora's withdrawal amount calculator multiplies a portfolio by a rate you choose. It does not test the rate against markets, inflation or how long you may live.
Is a required minimum distribution the same as spending money?
No. The IRS describes it as the minimum amount you must withdraw from certain accounts each year. You can withdraw more. How much to spend is a separate question.
Should I add my RMD to my planned withdrawal?
Not without checking. For the same account they overlap. Ask the account custodian how the year's withdrawals count toward the RMD.
Do Roth accounts have required withdrawals?
The IRS says no, while the owner is alive. Beneficiaries of Roth accounts are subject to the rules.
What should I send through the inquiry form?
Describe the question you want to work through, such as how your calculators relate to each other. Do not submit account statements, account numbers, tax returns or other confidential financial documents.
Sources
Internal Revenue Service: Retirement plan and IRA required minimum distributions FAQs (last reviewed January 29, 2026); Retirement topics: Required minimum distributions (last reviewed April 8, 2026); Publication 590-B (2025), including its 2026 example. Internal Revenue Bulletin 2024-33 (T.D. 10001 preamble, August 12, 2024). Electronic Code of Federal Regulations: 26 CFR 1.401(a)(9)-2(9)-2) (date not shown, accessed October 15, 2026). Social Security Administration: Early or Late Retirement (date not shown, accessed October 15, 2026); More Info: When To Start Benefits (last reviewed or modified July 29, 2022, accessed October 17, 2026). Valora calculators, as published and read October 15, 2026: withdrawal amount, RMD estimate and Social Security break-even.