401K rollover to satisfy IRA RMD
Dear Alan,
We have a client who has already satisfied his 2017 401(k) RMD.
He has yet to take his 2017 IRA RMD. Can we roll an additional $10,000 out of his 401(k) into his IRA and use that cash to satisfy his 2017 IRA RMD by making a QCD?
The reason for this- we do not want to sell any of the investments in his IRA to satisfy that RMD or to make a QCD.
Thanks,
Chris
Permalink Submitted by Alan - IRA critic on Tue, 2017-03-28 21:30
Chris, the client can do that. Perhaps client should also consider rolling the entire 401k balance into his IRA unless there is definite benefit of maintaining the 401k, such as creditor protection or perhaps a stable value fund he likes.