Comments on: GFC 090: Required Minimum Distribution Rules for IRA and 401(k)s

By: Jeff Rose

Jeff Rose — Mon, 02 Oct 2017 19:59:55 +0000

In reply to Ahmet Topcubasi. Hi Ahmet - I don't think so, since you're still employed with the company that also holds the plan. The plan administrator should take care of this. But if you get a letter from the IRS, you can just show that you're still employed with a copy of a recent paystub and your latest W2.

By: Ahmet Topcubasi

Ahmet Topcubasi — Thu, 28 Sep 2017 16:32:17 +0000

I am becoming 70.5 years old this year. I have a 401k account from my current employer. Do I need to notify IRS that I am still working or they will know my situation?

By: Jeff Rose

Jeff Rose — Wed, 09 Aug 2017 14:26:23 +0000

In reply to James Jenkins. @james I've never heard of this in all my years of being an advisor.

By: James Jenkins

James Jenkins — Wed, 09 Aug 2017 04:37:09 +0000

I have heard you can leave your rmd in your 401(k) if you just pay the tax on the rmd. Is it true?

By: Jeff Rose

Jeff Rose — Thu, 06 Jul 2017 20:00:53 +0000

In reply to Edward. Hi Edward - You're generally supposed to begin taking RMDs at age 70.5. But I believe there is an exception if you are still working for the plan sponsor. Now if you have 401(k) plans from previous employers, you must begin taking distributions from those. The exception doesn't apply to non-active employers.

By: Edward

Edward — Sun, 02 Jul 2017 11:31:38 +0000

I’m turning 70 in December and working. Is it mandatory to start distribution from 401k or not till I stop working?

By: Jeff Rose

Jeff Rose — Tue, 27 Dec 2016 00:48:09 +0000

In reply to mahesh shah. Be careful Mahesh - If you have multiple accounts, the RMDs must come from each account. You can't do a distribution from one account to cover them all.

By: mahesh shah

mahesh shah — Thu, 22 Dec 2016 16:35:43 +0000

[ HAVE 2IRA ACT & 2 ROTH IRA ,SO I CAN PAY RMD TOTAL FROM ONE ACT BEFORE 70.5 +1ST APRIL NEXT YEAR.

By: perry Hartge

perry Hartge — Thu, 27 Oct 2016 01:30:39 +0000

In reply to Jeff Rose. Jeff, Thanks for your answer This will put me in a situation that will cost me money My 401 has no management fees, moving it into my IRA will incur a management fee

By: Jeff Rose

Jeff Rose — Wed, 26 Oct 2016 19:02:17 +0000

In reply to perry Hartge. Hi Perry - I believe that since they are separate plans, each has to calculate - and distribute - a separate RMD. If you want it to come out of one account then you may want to consider rolling the 401k over into your IRA. But make sure you aren't giving up any benefits from the 401k before you make the move.