Is the RMD limited to 4% of the money available in the IRA account?

The required minimum distribution (RMD) is calculated based on your age and estimated life.  The idea is that you get enough of your distribution each year to at least cover that time frame.  The IRS provides the tables for the holding agents of your pension to calculate the RMD each year.

Generally, a RMD is calculated for each account by dividing the prior December 31 balance of that IRA or retirement plan account by a life expectancy factor that the IRS publishes in Tables in Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs). Choose the life expectancy table to use based on your situation.

• IRS FAQs Retirement and IRA RMDs (Click this link then select your life expectancy table)