outside IRA deposited to THRIFT SAVINGS with Government employee is age 73
An IRA rollover to govt. THRIFT SAVINGS is allowed. The issue here is can the employee take his $500,000 outside IRA, send it to THRIFT, and avoid his RMD as he turns 73 next year? It would seem to be a circumvention of the intent of RMD, but maybe recent guidelines changed with Secure Act???? Does this work for a regular 401k also, as long as continuing to work??? We have clients that are over 75 and still govt. employees. If this is true, We should suggest this to move their IRA funds if they don’t need the RMD for living expenses.
Permalink Submitted by Alan - IRA critic on Fri, 2025-01-24 15:05
Yes, rolling an IRA into a qualified plan if the participant is still working for that plan sponsor will eliminate RMDs on that balance until the participant’s retirement year.
However, if the employee will reach 73 before the end of 2025, the IRA RMD for 2025 will have to be distributed before rolling over the rest of the IRA.
The Secure Act had no effect on this strategy.