In-Service 401k distribution – 2012 RMD required??

Submitted by Craig Larson on Mon, 2012-12-17 23:42

A still-working 73 year old client did an in-service 401k distribution/direct rollover to IRA in February 2012. Does she need to do an RMD for 2012 or is the first one for 2013 on the IRA rollover amount?

Thanks!



Submitted by Alan - IRA critic on Mon, 2012-12-17 23:49

If she works through the end of 2012, there will be no 401k RMD for 2012. There will be an IRA RMD for 2013 based on the 12/31/2012 IRA balance, and no 2012 IRA RMD.If she retired before the end of 2012, there are other issues to resolve.



Submitted by Craig Larson on Tue, 2012-12-18 19:22

thank you!



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