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    Eeyore58's Avatar
    Eeyore58 Posts: 2, Reputation: 1
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    #1

    Apr 7, 2014, 06:45 PM
    401k Withdrawal after 70 1/2
    How much is a person required to withdraw each year from their 401k, after reaching age 70 1/2 ?
    ma0641's Avatar
    ma0641 Posts: 15,681, Reputation: 1012
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    #2

    Apr 7, 2014, 08:06 PM
    It is called an RMD and your fiduciary will determine it. It is based on life expectancy.
    ebaines's Avatar
    ebaines Posts: 12,130, Reputation: 1307
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    #3

    Apr 8, 2014, 07:56 AM
    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%.
    Eeyore58's Avatar
    Eeyore58 Posts: 2, Reputation: 1
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    #4

    Apr 10, 2014, 07:10 PM
    Quote Originally Posted by ebaines View Post
    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%.
    Ok, thanks!

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