Still working exception for 457 and 401K

My neighbor turns 72 this year. She has a 457 plan with her current government employer and plans to keep working for several more years. She has a 401K plan with a former employer. Since she is still working can she delay the RMD for her 457 plan? Can she delay the RMD for the 401K with the former employer? Thanks.



The IRS rules recognize the “still working exception” for 457b plan RMDs, and most such plans allow it. But to be sure she should verify with the 457b administrator that the exception applies to this plan. If it does, AND if the 457b accepts rollovers from 401k plans, she could roll the old 401k plan into the 457b and delay RMDs from the 401k starting in 2023. Otherwise, the 401k plan must distribute RMDs and with or without the 2022 rollover, the 2022 401k RMD must be distributed by the earliest of any rollover to the 457b or 4/1/2023.

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