RMD question
Hello,
I have a client who is 75 years old and is currently working and contributing to an employer sponsored 401k plan administered by Voya. Does he have to take an RMD from this 401k this year?
Your help is appreciated!
Hello,
I have a client who is 75 years old and is currently working and contributing to an employer sponsored 401k plan administered by Voya. Does he have to take an RMD from this 401k this year?
Your help is appreciated!
Permalink Submitted by Alan - IRA critic on Fri, 2022-10-28 16:10
He probably does not under the “still working” exception. However, this exception does not apply if client was a >5% owner in the year he reached 70.5 (if born prior to 7/1/1949) or the year he reached 72 (if born after 6/30/1949). There are also a few plans that require ALL employees to start RMDs at the applicable age. If in doubt client should inquire with the plan administrator. If client had to take an RMD last year, he will also have to this year. He will also have to take an RMD for 2022 if he retires before year end.