Simple IRA – 70.5 year old participant
We have a Simple IRA plan for our practice. One of our employees has turned 70.5 years old. American Funds is saying that he has to start taking RMD’s like a traditional IRA rather than a 401k, even though he is employed with us now.
Do you agree? If not, what section of the code covers this?
Permalink Submitted by Alan - IRA critic on Wed, 2013-11-06 18:18
Yes, they are correct. All forms of non Roth IRAs require RMDs to start at 70.5, even though working taxpayers can still contribute to SEP and SIMPLE IRA accounts after that age.