Question: I am over age 70½ in 2014. How do I determine the amount I must withdraw each year from my IRA & 401(k) accounts to avoid penalty?
Answer:
Generally, a required minimum distribution (RMD) is calculated for each account by dividing the prior December 31 balance of that IRA or retirement plan account by a life expectancy factor that IRS publishes in Tables in Publication 590 (PDF), Individual Retirement Arrangements (IRAs). There are three separate tables:
For additional information, see Publication 590 for RMD on IRAs and Publication 575 for RMD on 401(k) plans.