401K RMD Question
Hello,
If someone is 73, still working and contributing to their 401k, do they need to take an RMD from the 401k? Does it depend on whether or not they are an owner of the business?
Thank you.
Hello,
If someone is 73, still working and contributing to their 401k, do they need to take an RMD from the 401k? Does it depend on whether or not they are an owner of the business?
Thank you.
Permalink Submitted by Alan - IRA critic on Tue, 2023-10-17 15:09
They must take an RMD if they are a >5% owner of the business. If they are not a >5% owner there are no RMDs required under IRS rules as long as they have not retired by year end, but a few plans still require them. In these cases the RMD would be a plan RMD not a statutory RMD and it could be rolled over.