401(k) RMD While Working
What classifies as working to avoid having to take the RMD from the 401(k) beyond 70.5? Can she work 1 day a week?
Thanks.
What classifies as working to avoid having to take the RMD from the 401(k) beyond 70.5? Can she work 1 day a week?
Thanks.
Permalink Submitted by Alan - IRA critic on Wed, 2014-09-10 18:36
The plan is responsible for communicating their RMD requirements and distributing RMDs. This includes the plan definition of work hours needed to continue contributions and also to meet the “still working” exception with respect to RMDs. Separation from service at any time during a year after employee has reached 70.5 will make that year an RMD distribution year.