Time for RMD in 2023- so many accounts
Met a client who has the following
Rollover IRA, Contributory, IRA,SEP -IRA, Simple and 401k plan
Total equal over $2,500,000 spread amongst all these plans.
He is turning 72 in April 2023 /
Question: Is the RMD calculation also include the 401k balance even though he is still contributing to this plan?
Thank you
Permalink Submitted by Alan - IRA critic on Fri, 2022-11-18 00:00
If he is not a 5% owner of the employer sponsoring the 401k, most plans would not require 401k RMDs under the “still working” exception. He would have to be still working there as of 1/1/2024 to avoid 2023 RMDs from the 401k, although if he retires in 2023, he could defer the first RMD to 4/1/2024.