Still Working at age 73 – is there a RMD from Rollover from 401K made this year
Client turns 73 in 2025, is still working, and does not plan to retire this year. He wants to do a partial rollover of $1M from his 401k into his IRA in 2025. Does he need to take a 2025 RMD from the $1M by his required beginning date?
Permalink Submitted by Alan - IRA critic on Fri, 2025-02-28 13:23
There is no 2025 RMD unless client is a >5% owner of the company at any time in 2025 or if the plan requires RMDs at 73 for all employees, which some plans do. That would result in 2025 being an RMD distribution year whether client continues to work or not, and the 2025 RMD would have to be distributed prior to any rollover.
In determining >5% ownership, family attribution rules apply. For example, ownership share of the company by a parent, grandchild, or child is attributed to the participant.
Permalink Submitted by Shana Kravatz on Fri, 2025-02-28 13:39
Thank you!!