Employer making RMD to non-owner… rollable?
I’m working with a 73-year-old woman who’s still working (non-owner). Her plan is forcing annual RMDs from her 401(k).
I know that RMDs cannot be rolled over, but since this is not “required” (this is a _MD), is it possible that she can roll the plan distribution to her IRA without any issues?
Permalink Submitted by Alan - IRA critic on Sun, 2017-08-20 17:41
Yes, since this is not a statutory RMD and only a plan RMD, it can be rolled over to her IRA. It is a plan RMD if all employees must begin RMDs at 70.5, but not if the client must take an RMD due to family attribution rules that results in 5% ownership.