Pension Plan Distribution, 72 yos, still active/part time
Hi: I have a client who turned 72 yos in 2023. They want to semi-retire but still work as a part-time employee for the same employer in which they have a pension plan. Can they still take distributions from their pension plan with an active/part-time employee status? Does it depend on other distribution types the Plan may have based on the age with an active/part-time position? Thanks.
Permalink Submitted by Alan - IRA critic on Tue, 2023-02-28 21:25
Secure 2.0 will extend client’s first RMD year to 2024 in the event the plan does not consider client “still employed” at the end of 2024. As for partial non RMD distributions, the plan provisions control that, so client would have to check with the plan regarding non RMD distributions. Of course, if the client wants to take distributions from the plan, they might not care if they do not work enough hours for the plan to treat them as “still working”.