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Question: I am over age 70 ½. 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 31st 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:
1. The Uniform Lifetime Table (Table III) is used by an unmarried owner, a owner whose spouse is not the sole beneficiary, and an owner whose spouse is not more than 10 years younger;
2. The Joint and Last Survivor Table (Table II) is used by a married owner whose spouse is both more than 10 years younger and the sole beneficiary of the account; and
3. The Single Life Expectancy Table (Table I) is used by a beneficiary of an account.
 
Over 70 ½. How to determine the amount I must withdraw each year from my IRA & 401, Answer