A couple of years ago I read The Truth About Money by Ric Edelman. The
book was published in 1996 so some of the tax laws may have changed by now.
There was a discussion about maximum accout balances by age off of an IRS
table and also a maximum withdrawal of $155,000 per year. There is also a
minimum amount that can be taken yearly.
He gave an example of a man who dies at 82 with about $2,000,000 in
retirement accounts. He leaves his money to his 12 grandchildren. His estate is
taxed as follows. Because he had too much money in his accout the estate was
taxed 15% on monies over the tabled amount(-145,000). Basic estate
tax(-1,020,000). A generation skipping tax of 33% of the remaining balance
(-275,000). Income tax from the earned income(-302,000). After all the
taxation the estate was left with $258,000. A tax burden of 87%.
With the money that is being deposited into my 401 plan I will have millions of
dollars in it by 59.5. I will be in a situation where the minimum amount I am
allowed to take out exceeds the maximum amount I am allowed to take out and
thus a 15% penalty on top of income taxes. The account balance will be
escalating much quicker than I can possible withdraw. OH MY!! Of course this
is still hypothetical at this time but a VERY real possibility, not just for me but
many others that have started investing heavily as soon as we could. I have had
good average yearly returns and my account balances are already quite high and
I have 13+ years to 59.5.

I have a couple of questions that someone might be able to answer.
1. Is the information in this book correct about maximum account balances,
minimum and maximum withrawals? If so where might I find the IRS tables?
2. Would the maximum withdrawals be totaled for my wife and I or would we
each be able to withdraw $155,000?

Thanks for your ear (eye)

Ken