RMD from a 401(k)
I believe participants of a 401(k) plan will also need to take RMD’s. Is this correct? If the participant is still employed are they exempt from taking an RMD?
I believe participants of a 401(k) plan will also need to take RMD’s. Is this correct? If the participant is still employed are they exempt from taking an RMD?
Permalink Submitted by Alan Spross on Fri, 2010-01-22 20:24
Under IRS rules, an employee does not have to start RMDs until after separation from service UNLESS they are a 5% or greater owner of the firm. However, there are a few plans that still require RMDs of employees to start at age 70.5, even though this is not an IRS requirement.