Aggregating 401k rollover with existing IRA
Can a individual, age 70-1/2 this year and still employed and participating in his company’s 401k, rollover a portion of that 401k to a separate IRA and aggregate it with his existing IRA for purposes of taking his RMD this year from the rollover IRA (assuming, of course, that the 401k plan sponsor allows an in-service transfer)? If that’s allowed, would he then add the 12/31/14 value of the rolled-over portion of the 401k, to that of his existing IRA, to calculate his RMD?
Permalink Submitted by Alan - IRA critic on Tue, 2015-01-13 18:08
If permitted, the additional value in the IRA from the 401k rollover will not be reflected in the IRA year end value for RMD purposes until the following calendar year. In other words, the IRA RMD in the year of the rollover will not be affected by the rollover, and the value of that rollover will not be added to the 12/31/2014 IRA value.