How much is a person required to withdraw each year from their 401k, after reaching age 70 1/2 ?

It is called an RMD and your fiduciary will determine it. It is based on life expectancy.

The IRS publishes rules as to the amount of the Required Minimum Distribution (RMD) - it's basically a percentage of the account balance as of Dec 31 of the prior year, and as you get older that percentage goes up. Here's a table of the expected "distribution period" by age: IRA Required Minimum Distributions Table | Bankrate.com To get the RMD percentage take the inverse of this number. For example at age 70 the expected distribution period is 27.4 years; hence the amount to be distributed that year is 1/27.4 = 3.64%. By the time you reach age 80 the expected distribution period is 18.7 years, so the RMD amount is 1/18.7 = 5.3%.

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Originally Posted by ebaines

The IRS publishes rules as to the amount of the Required Minimum Distribution (RMD) - it's basically a percentage of the account balance as of Dec 31 of the prior year, and as you get older that percentage goes up. Here's a table of the expected "distribution period" by age: IRA Required Minimum Distributions Table | Bankrate.com To get the RMD percentage take the inverse of this number. For example at age 70 the expected distribution period is 27.4 years; hence the amount to be distributed that year is 1/27.4 = 3.64%. By the time you reach age 80 the expected distribution period is 18.7 years, so the RMD amount is 1/18.7 = 5.3%.

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Ok, thanks!