RMD from Profit Sharing while employed…
A client is turning 70 1/2 this year and has a TIRA, as well as, a Profit Sharing as part of owner of a mobile home park (S Corp). Annual contributions continue to flow into the Profit Sharing. Since the client is an active owner (secretary is her position and receiving dividends), is it correct that she needs to start withdrawing from the IRA, but not the Profit Sharing account?
Permalink Submitted by Alan - IRA critic on Mon, 2013-02-04 20:43
This is the first RMD distribution year for the IRA, although the 2013 RMD can be delayed as late as 4/1/2014. Also, if the client is a 5% or greater owner of the S Corp, RMDs from the PS Plan are required in the same manner as the IRA. If less than a 5% owner, RMDs from the PS plan can be delayed until retirement unless the plan specifies otherwise.