RMD- IRA’s and 401(k) for owner of company
I have a client who is 72 years old and has money in his company’s 401(k) profit sharing account and has an IRA. I am under the impression that it is better to treat the RMD separately for each. Is this the best way to handle the RMD’s?
Thank you.
Permalink Submitted by mk foss on Wed, 2011-12-14 19:40
You are required to take a separate 401(k) RMD from the 401(k) plan.
If someone has more than one IRA, they can calculate the RMDs for each, add them together and then take the total in any way they see fit.
If there is just one IRA and one qualified plan, an RMD must be calculated and withdrawn from each.