Rollover to QRP after 70 1/2 to Delay RMDs?

Submitted by John Peterson on Tue, 2014-04-22 21:31

I think the following are correct:

Minimum distributions from qualified plans don’t have to commence for non-owners over 70 1/2 until termination of employment.

So a non-owner employee can roll TIRA $$ into his employer’s qualified plan and effectively delay the RMDs on the former IRA $$.

Question is, what if the IRA owner is already over 70 1/2 and is taking IRA RMDs is it now too late to roll the balance of the IRA into the QRP and delay future distributions?

Thanks



Submitted by mk foss on Wed, 2014-04-23 01:05

If the Qualified Retirement Plan will accept IRA rollovers, it doesn’t matter whether the IRA owner was already taking IRA distributions. The RMD for the year of the rollover must be withdrawn before the balance of the funds are rolled to the QRP. No after tax amounts can be rolled to a QRP.



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