Rolling 401K over to IRA while taking RMD
Rolling 401K over to IRA while taking RMD
tperry2 – Thu, 2013-02-14 16:01.
I have a client age 72 who would like to move 401K over to IRA that would give him 2 IRAs.Question: Where does his RMD payment have to come from?The acount value of 401k as of Dec 31 2012.Or can we roll the money over now and take RMD from 2013 IRA.Setting up 2 IRAs so he can pull from only one using the value of both
Permalink Submitted by Alan - IRA critic on Thu, 2013-02-14 22:40
Duplicate post.
Permalink Submitted by Thomas perry on Fri, 2013-02-15 20:18
Can not find other post. Could you please reply
Permalink Submitted by Alan - IRA critic on Fri, 2013-02-15 20:38
Assuming client is no longer working for the 401k sponsor, the 2013 RMD would have to be distributed from the 401k and not included in the rollover to the IRA. If he already has an IRA, the IRA RMD can be taken anytime this year based on the IRA 12/31/2012 value. For the 2014 RMD, the IRA value on 12/31/2013 will be used. He cannot take the 2013 401k IRA from the IRA.