RMD for 70 1/2

Submitted by Douglas Bauerband on Wed, 2017-08-16 16:49

a. have client turning 70 in March of 2018 and 70 1/2 in Sept of 2018.

Am i correct in stating that he does not have to take his RMD until 2019?

b. client is 69 and will be working until 73 or 75.

Am i correct in stating that he does not have to take his RMD at all, if he is till working and over 71 years old?

Thank you.
Doug

Permalink Submitted by Alan - IRA critic on Wed, 2017-08-16 18:37

Yes, the 2018 RMD can be delayed to as late as 4/1/2019 but if delayed to 2019 then there will be two taxable RMDs taken in 2019.
Yes, no RMD due from the plan of the current employer until after retirement assuming client is NOT a 5% owner. There is also a slight possibility that the plan requires ALL employees to start RMDs at 70.5 even while still working. There are a few plans that have those provisions. but if they do they should advise the employees.