RMD For sole proprieter
I have a client who is a sole proprieter, has a SEP and is still working at age 70. She does not need the RMD. I know she must take the RMD from the SEP even though she is still working. Is there another type of plan that she could start for next year such as a single 401K that she would not be required to take the RMD?
Permalink Submitted by mk foss on Wed, 2012-09-26 20:21
There is no RMD requirement for a solo 401(k) or any other qualified plan. However those plans require an adoption agreement, periodic updates and annual returns once the assets reach $250K. They can be a very good way to increase your retirement funds but if you’re just going to work for a few years, the additional paperwork might not be worth it.
Permalink Submitted by Alan Spross on Wed, 2012-09-26 21:23
But even if she started a solo K and rolled the SEP IRA into the plan, she would still have to take RMDs at 70.5 because she would be greater than 5% owner.
For an employee of a large corp (