SIMPLE and over 72
Bill is a small business owner and is 75. he’s still running his business and wants to set up a SIMPLE IRA and contribute to it while he continues to work. He has an IRA and has been taking RMD’s. Also, i’m assuming he will still need to take RMD’s from the SIMPLE, correct?
Thanks,
Permalink Submitted by Alan - IRA critic on Tue, 2021-08-03 21:49
Yes, an IRA is not eligible for the “still working exception” to delay RMDs. Of course, the RMD is based on the prior year end balance, so he can always contribute considerly more than he has to take out in RMDs.