Accounting, Payroll & Pension Issues/How do I project the mandatory...

Advertisement

Expert: - 1/3/2005


Question
How do I project the mandatory distribution percentage of mine and my wife's 401k?
I will turn 72 this year and my wife will be 71 in August.  I am already receiving some but want to know the mechanics

Ed Hassett

Answer
The percentage is in a table published by the IRS. For 2005, the required minimum is your account balance on 12/31/04 divided by 25.6. For 2006, the minimum is your account balance on 12/31/05 divided by 24.7. For 2007, 2008 and 2009 the factors are 23.8. 22.9 and 22.0 respectively. Your accountant or financial institution should be able to give you know the factors in the future.

Accounting, Payroll & Pension Issues

All Answers

Answers by Expert:

Ask Experts

Volunteer

Allen

Expertise

Pension questions ONLY. Pension, profit sharing, and 401(k) plan design, installation, administration and actuarial services; rollovers to Individual Retirement Accounts; taxation of retirement plan distributions

Experience

Over 35years experience in the pension field

Organizations
Various actuarial organizations

Education/Credentials
MBA and various professional certifications

©2012 About.com, a part of The New York Times Company. All rights reserved.