Clarification for 76 yr old RMD
I am getting mixed info so hoping you can clarify. 76 yr old male is still working and has 401k with current employer. He plans to retire begining of 2019. If he rolls 401k over to IRA this year (2018) but continues to work until 2019, will he have to take RMD in 2018 or will that still be delayed until 2019?
Permalink Submitted by Alan - IRA critic on Thu, 2018-06-07 23:43
There is no 2018 RMD for any of the 401k funds as long as the person does not retire in 2018.
Permalink Submitted by Don Warnke on Fri, 2018-06-08 00:36
So even though he moved money to IRA in 2018 before he retired there will also be no RMD required from the IRA in 2018?
Permalink Submitted by Alan - IRA critic on Fri, 2018-06-08 00:45
There will only be an IRA RMD if there was already an IRA balance on 12/31/2017 due to IRA assets that were already in IRAs on that date. The 2018 401k rollover will show up in the 12/31/2018 IRA balance so the first IRA RMD on this money will be due in 2019.
Permalink Submitted by Don Warnke on Fri, 2018-06-08 12:27
Is there somewhere i can go to get documentation verifying this so I can show it to the person I am working with?
Permalink Submitted by Alan - IRA critic on Fri, 2018-06-08 16:55
See Q 2 in IRS Reg 1.401(a)(9)-7. I am not able to post the link.