401(k) rollover – RMD question
401k participant > 70.5 – not a 5% owner separates from service in 2016
New employer offers a 401k also
participant intends on rolling over her assets to the new employer’s 401k(k)
Does she need to take an RMD prior to the rollover to the new employer’s 401(k)?
Thank you
Permalink Submitted by Alan - IRA critic on Wed, 2016-02-10 22:15
Yes. 2016 becomes an RMD distribution year due to the retirement (from the plan sponsor) in 2016. As a result, any distribution from the plan will require that the 2016 RMD be distributed first and not included in the rollover amount.