RMD
Recently, my client, age 72 this July and still working full time, took an in-service distribution of his 401k assets and rollover them into his IRA. He has continued to defer his RMD in his 401k as permitted while he continues to work. But have we now created a mandatory RMD for 2012 when we rolled into his IRA? Will he now be obligated to take past year RMD? Does he have until 2013 to take this years RMD?
Permalink Submitted by Alan Spross on Tue, 2012-05-15 16:51
Yes, he will have a larger IRA RMD due to the rollover. If the rollover was done this year, it will not affect his RMD until 2013 as a result of the higher IRA balance on 12/31/2012. His IRA RMD this year will not be affected by the rollover and will be based on the 12/31/2011 balance.
Permalink Submitted by Denise Appleby on Tue, 2012-05-15 21:05
[quote=”[email protected]“]Recently, my client, age 72 this July and still working full time, took an in-service distribution of his 401k assets and rollover them into his IRA. He has continued to defer his RMD in his 401k as permitted while he continues to work. But have we now created a mandatory RMD for 2012 when we rolled into his IRA? Will he now be obligated to take past year RMD? Does he have until 2013 to take this years RMD?[/quote]
Adding to Alan’s response…
[quote]But have we now created a mandatory RMD for 2012 when we rolled into his IRA?[/quote] [b]Answer:[/b] No. He did not create a mandatory RMD for 2012 ( for the 401(k) ) when the amount was rolled to the IRA. He would have an RMD for the 401(k) for this year, only if he retires this year
[quote]Will he now be obligated to take past year RMD?[/quote] [b]Answer:[/b] If you are referring to the 401(k) plan, there is no RMD for past years
[quote]Does he have until 2013 to take this years RMD?[/quote] ” [b]Answer:[/b] If you are referring to the 401(k) plan, there is no RMD for the 401(k) plan this year, unless he retires this year.
RMDs are not eligible for rollover