RMD from an individual 401k plan
The situation is that the taxpayer funded an individual 401k plan in 2019 for year 2018. There was an excess contribution so some of the funds were distributed back to the taxpayer by the tax filing date. Taxpayer turned 70 1/2 in 2019 and is required to take the RMD no later than 4/1/20. But the problem is that there was no account balance in this account as of 12/31/2018. Does this mean he does not actually need to take the RMD for year 2019. He has not taken the distribution yet. The amount will be small in any event.
Thank you for your help
Permalink Submitted by Alan - IRA critic on Wed, 2020-01-22 21:27
With no 12/31/2018 balance, there is no 401k plan RMD for 2019, but there will be a 2020 RMD based on the 12/31/2019 balance including any excess contributions in the 401k at that time. The 2020 RMD must be distributed by 12/31/2020.