Retiring at 72
My client, age 72, plans to retire late this year or early next year. If he retires on any 2016 date, will he be required to take an RMD from his 401(k)?
My client, age 72, plans to retire late this year or early next year. If he retires on any 2016 date, will he be required to take an RMD from his 401(k)?
Permalink Submitted by Alan - IRA critic on Fri, 2016-06-03 19:57
2016 would be his first RMD distribution year. However, since his required beginning date is 4/1 of the year following his retirement, he could defer the 2016 RMD to early 2017. If he does a rollover to an IRA the RMD will be triggered at that time. Therefore, if he does not want to take an RMD this year, he needs to wait until next year to do an IRA rollover.