The amount you must withdraw from your 401(k) account each year once you reach age 70 ½. If you work beyond age 70 ½ and own less than 5% of your company, you can defer RMDs until you retire.
Your RMD amount is calculated using factors such as your life expectancy and account balance. Although your plan administrator may calculate your RMD, you (the participant) are ultimately responsible for calculating your RMD and for taking the correct amount on time every year from your account.
