Client is over age 70.5 but is still an active W-2 employee (the only employee) of his wife’s consulting company. He has zero ownership in the company so I assume the 5% ownership rule does not come into play here. They each fund their Solo 401ks on an annual basis.

Is he required to take RMDs from his Solo 401k even though he is still working?

My original thought was no, as the RMD requirements seem to be essentially the same as they are for a regular 401k type of plan. However, the BD disagrees, claiming that RMDs are in fact required.

Thoughts? Source would also be appreciated.

Thank you,

– Robert

Edit:

Per http://www.irs.gov/Retirement-Plans/One-Participant-401%28k%29-Plans

“The one-participant 401(k) plan isn’t a new type of 401(k) plan. It’s a traditional 401(k) plan covering a business owner with no employees, or that person and his or her spouse. These plans have the same rules and requirements as any other 401(k) plan.”

This leads me to believe that perhaps he (as the spouse ) is able to defer RMDs until retirement.