Mandatory Distributions at 70 1/2
No matter how much you like your 401(k), at some point, you’ll be required to start taking money out of it. Even if you continue to work at your job, once you reach age 70 1/2 you can no longer make contributions and, in fact, will have to start taking withdrawals.
The amount you’ll have to withdraw every year is based on your account balance and your life expectancy. The IRS uses the Uniform Lifetime Table to determine life expectancy. Divide your year-end account balance by your life expectancy in the table and you’ll see the amount you’re required to withdraw. Note that this number will change annually.
