Rollovers after 70 1/2 with job change
I will be 71 shortly and previously rolled my eligible IRA’s into my company 401(k) plan. I know that I do not have to take RMD’s while I am still contributing and working.
I am considering changing employers and want to continue contributing to the new company’s 401(k) plan as well as rolling my old company’s plan into the new employer. How much time do I have to make the transfer without having to take a RMD, which I am avoiding because I plan to work another 8-10 years and have no pension. I want to delay taking RMD until my 80’s.
Does anyone know the rules?
Permalink Submitted by April Apfelbaum on Thu, 2019-02-28 20:56
Interested in a definite answer.
Permalink Submitted by Alan - IRA critic on Thu, 2019-02-28 22:21
You cannot avoid an RMD for the year of a direct rollover into the new 401k plan, since as soon as you retire from the current employer in any year including or after the year you reach 70.5 it will trigger an RMD from the former plan for the year of retirement. After that you will avoid RMDs on that balance as long as you continue working for the new employer. Of course, you will have to check if the new plan will accept rollovers from other plans.