RMDs from 401k
Can someone confirm my understanding of RMDs from 401Ks
1. The 70 1/2 RMD from a 401ks is not required if an employee who is not a 5% owner is still working at the company where the 401k is employed.
2. Is there a minimum number of hours the employee must work to qualify for the 401k RMD exemption?
Thanks.
Permalink Submitted by Alan Spross on Tue, 2009-12-08 02:38
1. These are the IRS regulations, however an employer plan STILL has the option of requiring the RMDs at 70.5. The majority of plans are likely to permit the RBD to remain in the year following separation.
2. This is also a plan specific requirement, so the plan SPD or administrator should be asked how many hours per week or month are required for the plan to still consider them active. This would only be an issue for those plans that follow the IRS rule for the required beginning date per above.