RMD from 401k
Person was 70 1/2 in 2018. Was still working. Left the firm Jan , 2019 and went to another firm. Funds are still in 401k at old firm. She has until 12/31/2019 to make RMD based on 12/31/2018 balance, correct? Is that her only requirement? Then she could do an IRA rollover and start RMDs on a regular basis in 2020?
Permalink Submitted by Alan - IRA critic on Wed, 2019-03-20 17:08
There is no 2018 RMD unless 5% owner, 2019 RMD could be deferred to as late as 4/1/2020. However, any RMDs that will be due for the year or prior year at the time of an IRA rollover must be distributed at the time of the IRA rollover.