Required minimum distribution exemption?
I know that someone over age 70.5 but still working / contributing to a 401k is exempt from the minimum distribution on the balance in the plan. (not outside IRA’s)
Does this exemption apply to profit sharing plans? ie. an owner (over 70.5), wife and 2 employees are part of the plan – can he delay his required distributions until he retires?
Permalink Submitted by Alan Spross on Mon, 2007-12-17 22:17
No, because he is obviously a more than 5% owner. He will be in the position of both adding to his balance while also taking RMDs from the plan using the usual required beginning date of 4/1 following the year he turns 70.5.