How much do I need to withdraw from my 401(k)?

Hal emailed: When withdrawal of funds begins, how much or what percentage must be withdrawn each year? What happens to money left in a 401(k) when a person dies?

Before you hit age 70 ½, there’s no required amount to be withdrawn. After 70 ½ (if you’re no longer working for the employer or if you are employed and are a 5% or greater owner of the company), you can use this IRS worksheet to help you calculate the required minimum distribution (it’s the same form as the one you’d use for IRAs). You’ll take the account’s balance at the end of the prior year and divide it by the figure from the table to calculate the amount you have to withdraw for the year, says Jim Blankenship, a CFP and estate planner.