401k Rollover to IRA after 70-1/2
Are there any requirements that a 401k participant must take the RMD from the 401k before processing a rollover to an IRA if the participant is over age 70-1/2?
Are there any requirements that a 401k participant must take the RMD from the 401k before processing a rollover to an IRA if the participant is over age 70-1/2?
Permalink Submitted by Alan - IRA critic on Wed, 2014-04-30 19:37
If participant is retired, the current year’s RMD must be taken from the plan prior or at same time as the rollover distribution. If participant is still working, not a 5% owner, and if the plan allows it, in service distributions or rollovers can be done without an RMD from the plan. If an error is made and a plan RMD is rolled over to an IRA, it becomes an excess contribution to the IRA and must be removed from the IRA with allocated earnings.