RMD before 401(k) rollover
Just to clarify…my client is 78 and sill working, but plans on retiring next April, 2019. I know she has to do her RMD out of the plan before the rollover, but does she have to do another RMD in 2019 from the IRA?
Just to clarify…my client is 78 and sill working, but plans on retiring next April, 2019. I know she has to do her RMD out of the plan before the rollover, but does she have to do another RMD in 2019 from the IRA?
Permalink Submitted by Alan - IRA critic on Wed, 2018-11-14 20:49
No, just the employer plan RMD for 2019. The IRA RMD is based on the prior year end balance in the IRA and this balance will not be in the IRA on 12/31/2018, so there is no 2019 IRA RMD on this balance. However, the rollover in 2019 will increase the year end IRA balance for 2019, so the first IRA RMD on this amount will be in 2020.