RMD- Is first distribution prorated if employee works past 70.5
Doe anyone know if there is a such thing as a partial RMD based on working past age 70
Here is the situation
Employee worked past age 70 and is now 72 years old….he is retiring in November 2014. will his first distribution be prorated based on the number of days he worked in 2014 or will he have an RMD equaling the full amount for his age? This is a 457 plan. Thank you
Permalink Submitted by Alan - IRA critic on Wed, 2014-04-09 17:49
With respect to the plan of the employer from which he is retiring, 2014 will become an RMD distribution year, but since his required beginning date is not until 4/1/2015, he can take out nothing, part, or all of his 2014 RMD amount. The number of days worked is not a factor. Any 2014 RMD amount not taken in 2014 must be completed by 4/1/2015, then he must take his 2015 RMD as well by 12/31/2015. If he owns IRAs or other employer plans, he must take his full 2014 RMD by year end 2014 from those plans.