401k cashed in/ Questions on RMD
Can you confirm how this works? Laurie cashed in a 401k of around $7k from her employer. She is age 74 currently. She is wondering if there is anything that this could count towards her RMD?
Thanks.
Hi, I have a 73 year old gal who is retired. She did have an old 401k from an old employer that she just cashed in and received approximately $7k. Can you confirm if this would count towards her rmd for a separate Ira that she has? Thanks.
It would not. IRA RMDs can only be satisfied by distributions from SEP, SIMPLE or traditional IRA accounts.
Permalink Submitted by Alan - IRA critic on Wed, 2023-11-08 20:30
All distributions from a plan are credited toward the RMD for that plan in an RMD distribution year. However, if she is still working for this employer at year end and not a >5% owner there is no RMD for this plan. This distribution would also not count toward her IRA RMD if she has an IRA.