401(k) RMD

I seem to remember that the RBD for an employee older than 70 1/2 (not a 5% owner) is the year after the year he is separated from service. Is that correct, or is it the year OF separation from service?



The first RMD distribution year would be FOR the year of separation, but that distribution can be taken as late as 4/1 of the following year, which is the required beginning date (RBD). While unlikely, it is also possible for a 401k to require that ALL employees begin RMDs at 70.5, and that would be a plan RMD, not a statutory RMD. A non statutory (plan RMD only) can be rolled over.

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