401k rollover to IRA at age 72; RMD?…
I have a client that will be retiring on 4/1/22 and also turning age 72 in the same year, 2022. This client is not 5% or more owner. He also has an IRA.
Question: Since the client worked a partial year in the calendar year he turned age 72, is he required to take an RMD from his 401(k) in year 2022 (or until 4/1/23)? RMD based on 12/31/2021 401k value, then? Otherwise, since he worked a partial year in year 2022, can he defer his first RMD until year 2023 (or 4/1/24)?
Obviously, he will have an RMD from his IRA in year 2022.
Thanks,
Dave
Permalink Submitted by Alan - IRA critic on Wed, 2021-05-26 19:39
Client will have an RMD for 2022 based on 12/31/2021 value unless still employed on 1/1/2023, but it can be deferred until 4/1/2023 if desired. However, if client does an IRA direct rollover in 2022, the 2022 401k RMD must be distributed at that time or earlier.