401k Distribution Calculator

401k Distribution Definition

IRS regulations in the United States state that anyone who is older than 70 is required to start withdrawing money from their 401k/IRA account. If you are in such a situation, it is important to know about how much you are required to withdraw. There are several factors that will determine this withdrawal amount, such as the previous year-end account balance, your age at the end of the year, and the withdrawal factor. Combined, these three items will give you an idea of where you stand with your 401k or IRA account.

Calculator:

This 401k distribution calculator is very simple, and all it asks is that you enter your account balance at the end of the last year. As an example, we will enter $100,000 as the account balance.

Age:

The calculator also asks you what your age was at the end of the last calendar year. For this example, we will enter 72 as the age.

By pressing the calculate button, we get two values:

Required Minimum Distribution: $3,906.25
Withdrawal Factor: 25.6

Required Minimum Distribution:

This is the amount of money that you must withdraw every year from the 401k account. It is perfectly acceptable to withdraw more, but you are not permitted to go below the amount stated. Even if you do not need the money, you can withdraw it and place it into a checking account.

Withdrawal Factor:

The withdrawal factor is the number that your account’s overall value is divided by to reach the minimum distribution amount. The older you get, the lower your withdrawal factor, and the larger your minimum distribution requirement.

This calculator is perfect for anyone who has recently reached retirement age. Managing your 401k account can be a complicated process, especially if it is combined with other savings/retirement funds. By using this calculator, you have a one step process to determining how much money you must withdraw every year.

Checkout the 401k Contribution Calculator!

How to Calculate 401k Distribution

Let's be honest - sometimes the best 401k distribution calculator is the one that is easy to use and doesn't require us to even know what the 401k distribution formula is in the first place! But if you want to know the exact formula for calculating 401k distribution then please check out the "Formula" box above.

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You can get a free online 401k distribution calculator for your website and you don't even have to download the 401k distribution calculator - you can just copy and paste! The 401k distribution calculator exactly as you see it above is 100% free for you to use. If you want to customize the colors, size, and more to better fit your site, then pricing starts at just $29.99 for a one time purchase. Click the "Customize" button above to learn more!