401k RMD before rollover to IRA after retire after 70.5

Submitted by David Mitchell on Fri, 2018-01-26 15:01

Good morning,
I have a client who will turn 70.5 later in 2018, and retired in 2017 from her company where she had a 401k balance on 12/31/17. I believe she has a 401k RMD due to her in 2018. Does she need to satisfy this from her 401k money, or can she roll it all into her Traditional IRA, then withdraw the RMD from her Traditional IRA in 2018?
Thanks!



Submitted by David Mertz on Fri, 2018-01-26 15:45

  • The RMD from the 401(k) must be satisfied before the rollover of the remainder of the 401(k) to the traditional IRA.
  • The traditional IRA will has its own RMD for 2018, based on the traditional IRA’s 2017 year-end balance.  The deadline for taking the RMD from the traditional IRA is April 1, 2019.

Submitted by David Mitchell on Fri, 2018-01-26 16:02

thank you!

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