rmd and inservice wothdrawal
client is over 70 1/2 and still working with a 401k. she took an inservice withdrawal last year and rolled it into an ira (pretax money)
question is an rmd due on the rolled over portion now and how do you calculate it
thx
bob
Permalink Submitted by Alan - IRA critic on Mon, 2016-04-04 16:02
If she is not a 5% owner and worked into 2016 her withdrawal was not considered an RMD for 2015. But her IRA year end balance for 2015 will be higher as a result and her 2016 RMD from the IRA will be higher. In the event she is a 5% owner then her withdrawal would be credited to the RMD and to the extent of that RMD she would have an excess IRA contribution to be removed from the IRA because an RMD cannot be rolled over.