Two retirement accounts

I am in my 70’s and retired from government. I had a Thrift Savings Account that I rolled over into a Morgan Stanley IRA. I have been taking RMD’s for several years.

However, I am also working and have a 401K at that employer. I understand that since I am still working, RMD’s are not required.

My question: If I rollover some of that 401K to the MS IRA, will the increased IRA amount require an increased RMD from the now larger amount? If yes, how will a mid-year transfer affect the total RMD required?

Thanks in advance



You will probably not have an RMD from the 401k unless you are a >5% owner.  Yes, a rollover to an IRA will not change your RMD for the year of the rollover, but the following year will have a larger IRA RMD since the year end balance of the IRA this year will cause the RMD for 2020 to increase. Some people still working with a 401k plan will roll their IRA into the 401k to stop RMDs until they retire from the 401k employer. Therefore, transferring money from the 401k to an IRA will increase your RMD the following year, or reversing that rollover will reduce your total RMD in the following year.



Thank you Alan, appreciate the input



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