Roll RMD into 401k Plan
I have a client who is still working, aged 73 and has to take his RMD from his IRA. He asked about being able to roll over his RMD to his current 401k. Can he do this?
Based on the situation, as I understand it, it may make more sense for him to just move the entire IRA to his 401k plan, if his current employer 401k plan will accept it.
Thoughts?
Permalink Submitted by Alan - IRA critic on Fri, 2018-11-30 19:36
An RMD can never be rolled over. However, after taking his 2018 IRA RMD, if he rolls the entire pre tax balance (no IRA basis) into his 401k before year end, he will eliminate RMDs on this money starting in 2019 and thereafter as long as he continue to work. If he were to do this and retire before the end of 2019 nothing would be gained since a 401k RMD would then be due for 2019.