RMDs from IRA required while working
I’m sure this may have been covered, but if a client is over age 70 1/2 still working and participating in his employer’s 401k, BUT also has another IRA account, does he have to take an RMD from his IRA? Tks.
I’m sure this may have been covered, but if a client is over age 70 1/2 still working and participating in his employer’s 401k, BUT also has another IRA account, does he have to take an RMD from his IRA? Tks.
Permalink Submitted by Alan - IRA critic on Wed, 2015-12-16 23:42
Yes, the IRA RMD is required for each year the IRA exists, but if the 401k plan will accept an IRA rollover, the IRA can be rolled to the 401k and RMDs will end until client retires. For the year the IRA is rolled to the 401k, there is still an RMD for the IRA that cannot be rolled into the plan, but after that there will be no IRA balance.