RMD from 401(k) – special situation
I will be 70 on Jan. 2, 2018, so I will be 70-1/2 in 2018.
Suppose I work until Dec. 31, 2017 then retire.
Suppose I roll my 401(k) to an IRA as soon as possible after retiring.
Will I have to take an RMD in for 2018 based on 12/31/2017 account value, or is there an exception because I was still working then?
Thank you,
Permalink Submitted by Alan - IRA critic on Fri, 2014-01-03 17:40
You will have to take an RMD for 2018 which could be deferred till 4/1/19 if you left the 401k in place. But the IRA rollover will require the plan to distribute your RMD for 2018 before or at the same time as the rollover since the RMD cannot be included in the rollover. The only way to avoid an RMD for 2018 would be to work until at least 1/1/19 so that you had not yet retired in 2018. Of course, retiring at the end of 2017 would also not change your 2018 RMD requirement.
Permalink Submitted by Arthur Dicker on Fri, 2014-01-03 18:57
Thank you, Alan.Just to confirm: If I retire anytime in 2018, I will have to take an RMD for 2018 (based on 12/31/2017 value)?
Permalink Submitted by Alan - IRA critic on Fri, 2014-01-03 20:29
Yes, that is correct.