Client stil working at 70 1/2
Hello. I have a client that works for a government funded agency, and will be 70 1/2 this year. She plans to continue working. She has two plans that her employer funds, a TDA and a SEP IRA. I have two questions for you:
1. Does she have to take a RMD from these plans?
2. Will her employer be able to continue to fund these plans?
If you need more info., please let me know. Thanks.
Permalink Submitted by Alan - IRA critic on Tue, 2017-01-24 18:13
I assume the TDA is a 403b. If so, she will not have to take RMDs from the 403b under the still working exception, but will have to take an RMD on the SEP IRA value. Employer can continue to fund these plans. The only plans that require contributions to end at 70.5 are traditional IRAs.