RMD from 401k
My client turned 70 1/2 in 2009 & retired in 2009 but as of yet has not rolled over his 401k. Does he need to include the value of the 401k in his RMD calculation? Also, he was the bene of his wife’s 401k when she died in Oct 2009 at age 65. Am I correct in assuming that he does not need to include her 401k in the calc of his RMD? Thanks
Permalink Submitted by Alan Spross on Thu, 2010-02-11 04:58
That is correct.
If he wants to delay RMDs on the inherited 401k for as long as possible, he could leave her 401k in inherited form and RMDs would not need to begin until the year she would have turned 70.5. He could also roll it over to an inherited IRA (not his own), and also continue to delay RMDs until then.
For the RMD on his own 401k, the 2009 distribution year RMD was waived. He must take the 2010 RMD no later than year end 2010. If he rolls it into an IRA, the RMD will have to be taken out for 2010 first.