401K RMD AGE 72 Retiring November
I have a client that has a 401k and is going to retire this year, the end of November he is age 72. My questions is, is the 401k going to be added to the RMD equation this year since i’m rolling it to an IRA?
I have a client that has a 401k and is going to retire this year, the end of November he is age 72. My questions is, is the 401k going to be added to the RMD equation this year since i’m rolling it to an IRA?
Permalink Submitted by David Mertz on Thu, 2017-11-02 21:08
Retiring in 2017 makes 2017 an RMD year with respect to the 401(k). The 401(k)’s 2017 RMD (based on the 401(k) account’s 12/31/2016 balance and age 72) must therefore be completed *prior* to rolling the remainder of the 401(k) over to an IRA, otherwise the RMD amount becomes an excess contribution to the IRA. The 401(k) administrator should enforce this, but many fail to do so.