RMD from 401k
Hello. A customer is turning 70 1/2 this year, is still employed, and is a participant in his 401k. When we called the 401k provider about setting up his RMD payments, they said that if he is not a 5% or more owner in the company, he doesn’t have to take an RMD, until he retires. All sound correct? Thanks
Permalink Submitted by Alan - IRA critic on Thu, 2015-10-15 19:06
Yes, correct. When participant finally retires the year of retirement becomes an RMD distribution year, but the required beginning date is not until the following 4/1.