RMD Requirement for 401(a) Plans
I have a 75 year old client still working for the USDA who is rolling money over from his thrift savings plan into an IRA. He plans to continue working and contributing to the plan, but I believe he will be subject to RMDs because of the rollover. Is that correct?
Permalink Submitted by Alan - IRA critic on Thu, 2021-09-30 23:51
Yes, he will have to start IRA RMDs on the increased IRA balance in 2022. Some people continuing to work after 72 will do the reverse, rolling their IRA into the TSP to eliminate all RMDs. However, delaying RMDs in most cases results in higher RMDs once they do begin due to concentrating the RMDs over fewer years.