401K RMD while still employed
Client is an officer, but not an owner of a company. He’s 70. If he continues to work there beyond 70 1/2, does he have to draw RMD? What if it’s his life partner who owns the company? If they marry, can he still postpone RMD’s while working there? Thank you.
Permalink Submitted by mk foss on Fri, 2013-12-06 01:10
Since he owns less than 5% of the company, RMDs can be deferred until retirement. I haven’t seen any specific reference that would give a different result if the spouse is more than a 5% owner. That’s the true question that would need a little bit of research.
Permalink Submitted by Denise Appleby on Fri, 2013-12-06 02:42
Hi Mary Kay :)If his spouse owns the business, he would be considered a 5% owner (as a result), and would not be allowed to defer starting his RMD past age 70 ½.