401k Rollover
I have a client that is turned 70 1/2 on May 25, 2014. She is currently still employed, non owner, and contributing to her employer’s 401k plan. Another advisor asked her to move those monies as a direct transfer to an Rollover IRA this past summer. Because she’s 70 1/2 this year, does she have to take an RMD for these monies for 2014?
Permalink Submitted by Alan - IRA critic on Tue, 2014-11-25 19:46
Not unless she retires before year end. The rollover is OK because 2014 is not an RMD distribution year for her 401k plan as long as she is still working. She will have to take an IRA RMD in 2015 for the funds rolled to the IRA in 2014 using the 2014 year end balance.
Permalink Submitted by Aleksandar Krakovic on Tue, 2014-11-25 20:10
Thank you!