401k transfer
A client rolled some money from a 401k(a company that he currently works for) via an inservice transfer to a new IRA. He is currently 70 and turned 70 and half last week, but wants to start his RMDs now. The transfer was done in March of 2008. Do we have to use the amount he transferred in march in the rmd caluclation for 2008? Or can we wait until 2009 to include it?
Permalink Submitted by Alan Spross on Mon, 2008-04-21 20:40
There is no IRA RMD for 2008 on the transferred funds because there was no 12/31/07 IRA account balance reflecting the transferred amount. With respect to the 401k itself, since he is still working there was no RMD requirement to be withheld from the transfer unless he is a 5% owner.