SEP and RMD's - Ed Slott and Company, LLC

Submitted by Stephen Ambrosini on Thu, 2023-01-12 01:00

Gang,

I have an MD, 76 years old, continuing to work, and taking RMD’s from IRA annuity.

After 72 he started a new business and is currently funding a SEP, no other ee’s.

Probably will not retire till 80.

Question; does he have to take RMD’s from the SEP that he continues to fund?

Flag as spam

Permalink Submitted by Alan - IRA critic on Thu, 2023-01-12 01:23

Yes, SEP and SIMPLE IRAs are subject to RMDs at the applicable ages despite continuing contributions to those accounts. These RMDs can be taken in any combination from all owned IRA accounts. If the IRA annuity has been annuitized, those distributions basically satisfy the RMD for the IRA annuity only. To be clear, there is no “still working” exception to the RMD requirements for any type of IRA account.