401k MRD
Situation: Over 70 1/2 and have been employed and contributing to a 401k. On furlough since May and obviously not making contributions since.
Question: Required to take an MRD for 2011?
Situation: Over 70 1/2 and have been employed and contributing to a 401k. On furlough since May and obviously not making contributions since.
Question: Required to take an MRD for 2011?
Permalink Submitted by Alan Spross on Mon, 2011-11-14 20:40
It depends on whether the terms of the 401k plan define your classification as separated from service. If so, then 2011 becomes an RMD year, although you can defer the 2011 RMD until 4/1/2012 if you wish. Only the plan administrator can provide you with this information. The same situation occurs for those forced to accept reduced hours or job sharing.
It is also possible that you must take RMDs even if you are not separated. There are a few plans that require RMDs at 70.5 even while you remain employed, but this is unlikely.