One must start to take deductions from their 401K when they reach 70 1/2. How much or what % per year ?

Question

The calculator will not allow me to put in required year (2011). It only goes as high as 2008 !

Answer 1

A Required Minimum Distribution (RMD) is the amount the IRS requires the owner of a tax-deferred IRA, including traditional, simplified employee pension and SIMPLE accounts, or employer-sponsored  retirement plan like a 401k to take each year.  

***The amount is based on the account value at year-end and  the owner’s life expectancy, so it changes each year.***

The requirement begins the year the account owner reaches age 70.5. The RMD can be taken any time during the year but no later than Dec. 31. For the year in which the owner turns 70.5, the deadline is extended until April 1 of the following year. The owner can take more than the RMD, but the extra can’t be applied to next year. In other words, if the RMD is $1,000 for this year and the owner takes $1,500, the extra $500 cannot be credited toward next year’s RMD. However, a large distribution in one year reduces the amount of assets growing in the account, so the calculated RMD the following year may be less because the account value is less.

*****The calculator below (click the link) will give you a good idea of what amount of money you need to take out each year is.  You simply plug in the value of your 401K as of the end of the last year, your date of birth, your spouse's (or child's -- whoever is the beneficiery) date of birth, and click calculate.  It's great!*****

Answer 2

Prior posters calculator would still work, you simply have to modify dates of birth to make it seem like you turn 70 1/2 in 2008 instead of 2011.  The factors are the same....

Or if you wish...here is the actual table that you would use.