Still working exception for 401k- roll an old plan into the current plan
Client turns 72 but is still working and can delay RMDs from the current company 401k plan until retirement. Can you transfer an old employer’s 401k plan into the current plan (assuming the plan allows this) to delay RMDs from the old plan until retirement?
Would the transfer need to happen before 1/1 of the year the client turns 72? Or could you delay until the required beginning date (believe would be April 1 of the year after turning 72)?
Permalink Submitted by Alan - IRA critic on Thu, 2022-09-01 17:08
Yes, to avoid an RMD for the year of the direct rollover from the former plan, the rollover must be done prior to 1/1 of the year client reaches 72. The same would be true if client owns an IRA.