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Permalink Submitted by Alan Spross on Wed, 2008-03-19 06:12
Yes, if you are separated from service from the employer.
There are also some plans that do not permit you to delay RMDs until you retire even though the IRS rules permit it. For the rest, RMDs do not need to begin until April 1st following the year of retirement.
Finally, a 403b plan that separately accounts for an pre 1987 accruals requires that RMDs on those accruals not begin until age 75.
Permalink Submitted by Alan Spross on Thu, 2008-03-20 23:37
Yes, the “still working exception” does not apply to IRA accounts. That also includes SEP and SIMPLE IRA accounts while still working for the sponsoring employer.
Accordingly, it may be wise to check out possible rollovers of IRA accounts to the current employer prior to age 70.5 to prevent the IRA RMD from being added to the taxable wage income.
Permalink Submitted by Alan Spross on Wed, 2008-03-19 06:12
Yes, if you are separated from service from the employer.
There are also some plans that do not permit you to delay RMDs until you retire even though the IRS rules permit it. For the rest, RMDs do not need to begin until April 1st following the year of retirement.
Finally, a 403b plan that separately accounts for an pre 1987 accruals requires that RMDs on those accruals not begin until age 75.
Permalink Submitted by Janine Janine on Thu, 2008-03-20 17:59
Provided you are still working, do you have to start RMD’s from an [b]IRA[/b] after the age of 70 1/2?
Thank you.
Janine
Permalink Submitted by Alan Spross on Thu, 2008-03-20 23:37
Yes, the “still working exception” does not apply to IRA accounts. That also includes SEP and SIMPLE IRA accounts while still working for the sponsoring employer.
Accordingly, it may be wise to check out possible rollovers of IRA accounts to the current employer prior to age 70.5 to prevent the IRA RMD from being added to the taxable wage income.