401k Rollover and RMD

Submitted by Troy Frazier on Wed, 2019-12-11 17:49

the client is 71 and still working… June of this year (2019) rolled out 70k to an IRA.

does the client owe RMD on the IRA for this year?



Submitted by Alan - IRA critic on Wed, 2019-12-11 20:37

  • Not from the IRA for 2019. The IRA RMDs start in 2020.
  • But if client is a >5% owner of the firm, 2019 would be an RMD distribution year for the employer plan and part of the direct rollover would be a plan RMD and not eligible for rollover. In addition, the client will have to work beyond 12/2019 to avoid a plan RMD for 2019 even if not a >5% owner.

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