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    CAROLE KAPLAN's Avatar
    CAROLE KAPLAN Posts: 1, Reputation: 1
    New Member

    Mar 7, 2014, 10:13 AM
    The percentage of retirement account that can be withdrawn?
    What percentage of 401k and/or sep accounts has to be withdrawn starting at age 70 1/2. How does the percentage change every year.
    Note: I am not asking for a dollar amont, I want to know the percentage.
    talaniman's Avatar
    talaniman Posts: 54,284, Reputation: 10853

    Mar 7, 2014, 10:19 AM
    That is entirely dependent on which plan administrator you have as it varies from plan to plan. Contact your plan administrator.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man

    Mar 7, 2014, 11:14 AM
    Its not quite that simple. The Required Minimum Distribution is based on anticipated life expectancy. Not plan administrator.

    There are a number of RMD calculators on the WEB. Here's one: Required Minimum Distribution Calculator – FINRA
    ebaines's Avatar
    ebaines Posts: 12,132, Reputation: 1307

    Mar 7, 2014, 01:11 PM
    The IRS determines the required minimum distribution, not the plan administrator. The initial distribution must be made by April 15 of the calendar year following when you turn age 70-1/2, and by December 31 of subsequent years. Here's the IRS table - you divide your December 31 account balance by the expected "distribution period" (esssentially your life expectancy):

    The resulting percentages turn out as follows for the first five years:

    Age, RMD %
    70, 3.65%
    71, 3.77%
    72, 3.91%
    73, 4.05%
    74, 4.20%
    75, 4.27%

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