RMD in year of retirement
I have several clients retiring from pension plans (401a/403b) this month (August) who are in their mid 70’s. Must they take an RMD this year or can they delay it until April 1 of next year? If they elect to roll their balances to an IRA roll-over this year, does that change the timing of the RMD?
Thanks in advance for the clarification.
Permalink Submitted by Al Fry on Mon, 2008-08-04 21:52
They could wait until 4/1 2009, but they would have to take out 2 in 2009. RMDs are not rollover-eligible, so it has to come out before the rollover.