401(k) RMD
I seem to remember that the RBD for an employee older than 70 1/2 (not a 5% owner) is the year after the year he is separated from service. Is that correct, or is it the year OF separation from service?
I seem to remember that the RBD for an employee older than 70 1/2 (not a 5% owner) is the year after the year he is separated from service. Is that correct, or is it the year OF separation from service?
Permalink Submitted by Alan - IRA critic on Thu, 2018-09-27 23:25
The first RMD distribution year would be FOR the year of separation, but that distribution can be taken as late as 4/1 of the following year, which is the required beginning date (RBD). While unlikely, it is also possible for a 401k to require that ALL employees begin RMDs at 70.5, and that would be a plan RMD, not a statutory RMD. A non statutory (plan RMD only) can be rolled over.