RMD’s if still working past 72 and making IRA contributions after SECURE Act

Submitted by Nick Toadvine on Sat, 2020-01-04 21:53

Can someone defer RMDs past 72 if they are still working and making contributions to an IRA under the new SECURE Act rules?

Also, does the SECURE Act make NUA more desirable now with the new 10 year rule?



Submitted by Alan - IRA critic on Sat, 2020-01-04 23:27

  • The still working exception does not apply to any IRA plans, just qualified employer plans. The Secure Act just allowed TIRA contributions without age limit, the same as SEP and SIMPLE IRA accounts. All these IRAs require RMDs to start at 72, so there will possibly be years where contributions are being made and RMDs are being taken out.
  • NUA might be somewhat more desirable for the beneficiary since shares can be held without time limit and any gains will be taxed LT. But no additional benefit for the participant, and of course no basis adjustment for the NUA per share when participant passes. There is also the continued risk of too much concentration in a single holding.

Submitted by Nick Toadvine on Mon, 2020-01-06 15:32

Thank you!

Submitted by [email protected] on Fri, 2020-01-17 18:29

If you are still working past 72 for a company that offers a 401K plan do you have to make active contributions to the plan in order to be exempt from taking your RMD? or is it enough just to be employed? 

Submitted by Alan - IRA critic on Fri, 2020-01-17 18:52

You do not have to make contributions. Employment is enough to defer RMDs until after retirement. In cases of part time work or job sharing the plan provisions determine if an employee is deemed to be “still working”. 

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