401k withdrawal

Submitted by Gerri Fehst on Fri, 2023-10-27 19:44

I have been taking half my TSP because 75 but sheltered other half in the 401k of my current employer. When I retire from the current company in November 2023, can I postpone the first RMD from this 401k to April 1 2024? then take a second RMD from that account by Dec 31 same year ? Or must I take the rmd from the 401k the year I retire (2023?)



Submitted by Alan - IRA critic on Fri, 2023-10-27 19:51

  • Yes, if retiring anytime this year from your current company, 2023 will be your first RMD distribution year, but the 2023 RMD can be deferred to 4/1/2024. Your 2024 RMD will be due by the end of 2024, therefore if you defer 2023, you will have two years of RMD income to report in 2024.
  • SInce RMDs must be completed prior to any rollover to an IRA, if you want to defer the 2023, you cannot do a direct rollover to an IRA in 2023 either. If you want to do a direct rollover to an IRA in 2024, you will have to complete both the deferred 2023 RMD and the 2024 RMD before doing the IRA rollover.
  • You posted this request 5 times. Only one is needed for a response.

Submitted by Gerri Fehst on Sat, 2023-10-28 11:41

Thank you for such a clear and thorough response.  

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