Retired in 2018 but returning to work. Does RMD have to be taken?

Submitted by james robertson on Thu, 2018-06-07 08:15

I retired in February 2018 at age 71 and was planning on taking my RMD in November of this year. My 401K remains in place with my previous employer. I have been offered a new job with a different employer which would start in July 2018. If I roll my existing 401K from my previous employer to my new employer will I be required to take and RMD for 2018? I would not be a 5% owner of the new company.



Submitted by David Mertz on Thu, 2018-06-07 13:19

  • You are required to complete the 2018 RMD from your existing 401(k) before (or coincident with) rolling the remainder of this 401(k) to your new employer’s plan or to any other qualified retirement account.  Your existing 401(k) plan should enforce this RMD requirement.
  • After completing your 2018 RMD, be sure to make the rollover before the end of 2018.  If you wait until 2019 to do the rollover, you’ll have to complete your 2018 and 2019 RMDs before rolling over the remainder.
  • Be sure to do the rollover by direct rollover to avoid mandatory tax withholding.

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