SEP and RMD

If an individual over 70-1/2 has an employer funded SEP and is still working (and receiving annual contribuitons to the SEP by the employer) must he/she take RMD under the same rules as a normal IRA?

Or is it treated like a 401k where a working non-5% owner can continue to contribute (and receive employer match and profit sharing) and not have to withdraw any funds until the year after they stop work, regardless of age? I believe a Solo 401k acts the same way and does not need to be withdrawan for RMD until work stops.



The same RMD rules apply, as the funds are treated as Traditional IRA funds from the moment they are deposited into the IRA account.



And the solo 401k owner must take RMDs at 70.5 regardless of work status since owner’s interest is obviously > 5%.



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