RMD requirement while still contributing to a 401k
I have a client that is turning 70.5 next year.
He is still contributing to his 403(b) at his school.
I know he does not need to be taking distributions from his 403(b) while he is still working, but does he need to start the RMD on his IRA?
Thanks,
Bob
Permalink Submitted by Joseph Arsenault on Mon, 2009-11-30 15:35
Assuming it is a Traditional (not Roth) IRA, and RMDs are not waived for 2010 again, then yes.
The IRA and Employer sponsored plan are seperate for the exception you are referencing.
Also, since he turns 70.5 next year, he will have the option to defer the first year RMD until April 1st, 2011. This of course would create two RMDs in one year and cause some income tax hikes for him..
-J