in service distribution
Iam 78 years of age my salary is $120,000 dollars per year I have and my wife has IRA’s totalling approx 300,000 dollars .Iam still employed and wish to remain employed (really like my job ). My marginal tax bracket is between 25 and 33 % .I wish to roll my 401K ( $468,000) into an IRA .I do not however want to take RMD disributions from the roll over IRA . How can I accompolish this ?
Permalink Submitted by Alan - IRA critic on Fri, 2014-11-21 21:00
You can’t. You must take RMDs on the IRA balance starting in the year following the IRA rollover. So if you want to avoid RMDs you will have to keep the funds in the 401k plan and own less than 5% of the company. In fact, if you want to avoid IRA RMDs, you might be able to roll your current IRA balance (less any IRA basis) into the 401k plan. That will stop the IRA RMDs until you retire.