RMD 401-k and IRA
An individual has a small 401k and and an IRA. Regarding the RMD can he take it out of just the one account or must he take out of each one?
An individual has a small 401k and and an IRA. Regarding the RMD can he take it out of just the one account or must he take out of each one?
Permalink Submitted by Alan Spross on Tue, 2012-02-14 16:50
The RMDs must be separately calculated and separately distributed. The accounts cannot be combined for RMD purposes.
If he wants to roll the 401k over to his IRA, the RMD for the 401k must be satisfied first, and then he can roll over the remainder to the IRA.
NOTE: If he is still working for the company with the 401k and is NOT a 5% or greater owner of the company, his RMDs from most plans do not begin until after he retires.