RMD from 401k to satisfy IRA RMD
Our client is 70 1/2 and still working so no requirement to take $$ from his 401k.
We manage an IRA for him and he wants to know if he can take his IRA RMD from his 401k and satisfy the IRS without taking $$ from the IRA (assuming 401k will allow in-service distribution).
I’m thinking he cannot satisfy IRS rules for RMD by taking from his 401k but I can’t find anything to confirm it. Can you help?
Permalink Submitted by Alan - IRA critic on Wed, 2017-08-16 22:53
An IRA RMD cannot be satisfied by a distribution from a plan other than an IRA. Therefore, he cannot take the RMD from the 401k. If the IRA investments cannot be disturbed, client could probably do an in service direct rollover from the 401k to the IRA or another IRA, and then distribute the RMD from that money. It would be a two step process, but after both steps, the 401k balance would be reduced, but not the IRA.