Working past age 70 1/2 – are they still required to take an RMD?

Submitted by Amanda M on Wed, 2021-09-01 23:48

A client worked until she was almost age 74 and retired in 2020. She never took RMD’s when she reached 70 1/2 since she was still employed. Did her continuing to work allow her to delay RMD’s from her 401k but NOT her IRA?
Also need to confirm date she must begin taking RMD’s from her 401k assuming she retired end of year in 2020.
Thank you for clarification!



Submitted by Alan - IRA critic on Thu, 2021-09-02 02:22

Post deleted.

Submitted by Amanda M on Thu, 2021-09-02 15:34

I appreciate the information very much.  In regards to the same scenario above, with her turning 74 in 2020 and also retiring, would she still be eligible to have the RMD waived due to the CARES Act?Many thanks for being such a great resource!

Submitted by Alan - IRA critic on Thu, 2021-09-02 19:10

Good catch. I overlooked the 2020 RMD waiver. There is no 2020 RMD required for anyone or from any type of plan. Her first RMD would be for the year 2021, using the 12/31/2020 balance. The deadline for taking her 2021 RMD is 12/31/2021. There is no 4/1 deadline date for this reason, and she cannot use 4/1/2022 as the required beginning date for her 2021 RMD. I will delete the prior response since it is incorrect for a 2020 retirement.

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