401K & RMD rules
My Client DOB is 6/19/1951. He is trying to do a direct rollover to his TradIRA but the plan provider is requiring an RMD prior or concurrent with the r/o. Based on his DOB, was he excluded from the raise to 72 by Secure act 1?
Thanks
Permalink Submitted by Alan - IRA critic on Tue, 2023-01-10 20:25
A 2023 RMD is not required as he will only be 72 this year, and his RMDs start at 73. Most likely the plan has not yet updated their systems to reflect the Secure Act which was enacted only 2 weeks ago. While any distribution he receives is not an RMD and can be rolled over he should not have to deal with an extra transaction and do convince the plan that he can decline withholding. Perhaps he should present his case and the administrator will look into the Secure 2.0 new RMD age.