401K MRD for >5% owner at 70 1/2, then 0% owner when 71
quick question……
I think I understand correctly that a more than 5% owner of a company sponsored 401k plan must make MRD upon 70 1/2…….that happens if a year later person sells interest in company, has zero interest in company…….will the MRD still need to be made every year going forward?
Permalink Submitted by David Castelli on Mon, 2015-08-24 18:23
meant to say “what” happens a year later if individual no longer has a > 5% interest? are MRD still requiered?
Permalink Submitted by Alan - IRA critic on Mon, 2015-08-24 18:43
The IRS has never hinted that once the required beginning date (RBD) arrives, a change of circumstances would allow for suspension of RMDs. This situation also applies when a retired worker taking RMDs returns to work for the same employer and is therefore “unretired”. RMDs have started and once begun the consensus opinion is that they must continue. Individual therefore should continue the RMDs.
Permalink Submitted by David Castelli on Mon, 2015-08-24 18:57
thank you Alan. Your the best. I figured that was a long shot