when do RMDs begin?
if you are still working at age 72 and an active participant in a 401k and have no IRAs, when do you begin taking your RMDs?
if you are still working at age 72 and an active participant in a 401k and have no IRAs, when do you begin taking your RMDs?
Permalink Submitted by Alan Spross on Tue, 2008-04-08 02:14
Usually, the required beginning date is 4/1 following the year of retirement if you are not a 5% owner, although the actual year of retirement is the first distribution year. That means you would have two RMDs if you wait until the year of the required beginning date to take the first one.
However, a plan is NOT required to follow the IRS rules that allow the “still working” exception to the usual required beginning date. Your employer should tell you if that were the case, but you may want to check with them to confirm that you do not yet have an RMD requirement.
Permalink Submitted by Snow Man on Tue, 2008-04-08 02:20
Thanks for your prompt response. I wasn’t quite sure of the answer. I had tried to quickly find an answer thru my reference materials, but either my fingers were too quick, my pages were sticking or maybe I just couldn’t get my brain in gear. Anyway, thanks again…
Permalink Submitted by Al Fry on Tue, 2008-04-08 18:35
For the above reason, anyone working past age 70.5 desiring to delay distributions as long as possible should never retire on December 31, but always wait until January 2 of the following year.