RMD
Does a person that owned a business at the end of year 2024, sold the business this year, have to take a RMD based on the value of the 401(k) account . The retirement plan was terminated because of the sale.
Thank you,
Frank Dogger
Does a person that owned a business at the end of year 2024, sold the business this year, have to take a RMD based on the value of the 401(k) account . The retirement plan was terminated because of the sale.
Thank you,
Frank Dogger
Permalink Submitted by Alan - IRA critic on Tue, 2025-05-13 14:06
If the person was born in 1951 or earlier, RMDs should already have started. Owners of >5% of a business cannot use the “still working” exception.
If born in 1952, then 2025 is the first RMD distribution year based on the 12/31/2024 plan value. The 2025 RMD can be delayed in whole or in part to 4/1/2026.