In Service Distribution 401k – RMD Required?
76 year old participant in 401k plan wants to take an in-service distribution this year and roll the funds to an IRA at the bank. She is still employed. Is she required to take an RMD in 2022?
Thank you!
76 year old participant in 401k plan wants to take an in-service distribution this year and roll the funds to an IRA at the bank. She is still employed. Is she required to take an RMD in 2022?
Thank you!
Permalink Submitted by Alan - IRA critic on Thu, 2022-09-29 18:22
If she is not subject to RMDs due to the still working exception, she can do the rollover without any RMD. However, if she retires before the end of 2022, then 2022 will become an RMD distribution year, and some of her rollover will become an excess IRA contribution. In other words, if she expects to retire before year end, she should distribute her RMD before doing the rollover.