RMD while still working
An individual has both a 401(k) and an IRA. There was a balance in the IRA as of 12/31/24. The individual turned 73 in 2025 and is still working. Is it too late for the individual to rollover the IRA funds to his 401(k) plan to avoid his first RMD?
Permalink Submitted by Alan - IRA critic on Fri, 2025-09-26 18:59
Yes, the 2025 RMD will have to be distributed before rolling over the rest. However, as long as the individual continues to work, the funds rolled to the 401k will not become subject to RMDs from the 401k.
But if the individual retires prior to 1/1/2027, there will be a 2026 401k due, so this rollover will not reduce any RMDs unless they work into 2027 as a minimum.
Further, having no IRA balance, the individual will not be able to do any QCDs.
Note that if there is any IRA basis from non deductible contributions, such basis is not eligible to be rolled into the 401k.