401k to IRA rollover, when does RMD start
Client is 79, still working. Not taking RMD’s. Retiring soon, and rolling 401k to IRA. Since this will be his first RMD, does he have the ability to delay until April 1 next year, or must the RMD be taken during this calendar year.
Permalink Submitted by Alan - IRA critic on Thu, 2015-03-05 22:20
If he does the rollover this year, then the 2015 RMD must be distributed to him and NOT included in the rollover. Therefore, he would not be able to delay the RMD to 4/1/2016 unless he delayed the rollover to that time as well.
Permalink Submitted by Donald Paul on Mon, 2015-03-09 20:48
Does an employee that is still working at age 71 still have to take RMD from their current 401k?
Permalink Submitted by Alan - IRA critic on Mon, 2015-03-09 20:54
Usually not. But 5% or greater owners of the company must start RMDs at 70.5 and there are a few company plans that require everyone to start at 70.5 regardless of ownership.