RMDs from an Individual 401l
I am very familiar with the RMD rules except for I401k’s. We have a 73-year-old with an I401k that is still working. Do they have to take an RMD? My gut tells me, yes, but I wanted to double-check.
I am very familiar with the RMD rules except for I401k’s. We have a 73-year-old with an I401k that is still working. Do they have to take an RMD? My gut tells me, yes, but I wanted to double-check.
Permalink Submitted by Alan - IRA critic on Mon, 2024-09-09 17:15
Yes, this person is subject to RMDs despite continuing to work. The still working exception only applies to those who are not >5% owners of the employer. A solo K owner is obviously never qualified for this exception.
That said, since the RBD for this person is 4/1/2025, they could defer all or part of the 2024 RMD to 4/1/2025, although that would trigger 2 RMDs in 2025. But deferral might make sense if the person was about to retire in the next few months.