401k cashed in/ Questions on RMD
Can you confirm how this works? Laurie cashed in a 401k of around $7k from her employer. She is age 74 currently. She is wondering if there is anything that this could count towards her RMD?
Thanks.
Can you confirm how this works? Laurie cashed in a 401k of around $7k from her employer. She is age 74 currently. She is wondering if there is anything that this could count towards her RMD?
Thanks.
Permalink Submitted by Alan - IRA critic on Wed, 2023-11-08 20:30
All distributions from a plan are credited toward the RMD for that plan in an RMD distribution year. However, if she is still working for this employer at year end and not a >5% owner there is no RMD for this plan. This distribution would also not count toward her IRA RMD if she has an IRA.
Permalink Submitted by Carrie Baeten on Thu, 2023-11-09 19:05
Hi, I have a 73 year old gal who is retired. She did have an old 401k from an old employer that she just cashed in and received approximately $7k. Can you confirm if this would count towards her rmd for a separate Ira that she has? Thanks.
Permalink Submitted by Alan - IRA critic on Thu, 2023-11-09 20:58
It would not. IRA RMDs can only be satisfied by distributions from SEP, SIMPLE or traditional IRA accounts.