SIMPLE IRA eligible for “still Working” exception for rmd?
If you are still employed and contributing to a SIMPLE IRA and over 70.5, are you eligible for the “still working” exception to rmds from the Simple like you would be with a 401(k)?
If you are still employed and contributing to a SIMPLE IRA and over 70.5, are you eligible for the “still working” exception to rmds from the Simple like you would be with a 401(k)?
Permalink Submitted by Alan Spross on Fri, 2010-06-18 18:24
No.
The “still working” postponement of the RBD does not apply to any type of IRA account. Therefore, for SIMPLE and SEP IRAs, the RBD is the same as for traditional IRAs. Owners can be contributing to these accounts in the same year that they are taking out their RMDs. Often the contributions will more than offset the taxable income generated by the RMD.