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still working exception

The Still-Working Exception and Spousal Rollovers: Today's Slott Report Mailbag

Question: I have a client who just retired at age 80. He has $800,000 in his 401(k) plan which is being rolled over to an IRA. Does he have to take an RMD this year based on the December 31, 2022 401(k) account value, and can he defer that to early 2024? Thank you!

Why You Should Not Roll Over Your Company Funds to an IRA

In her June 28, 2023 Slott Report post, Sarah Brenner discussed several reasons why it pays to roll over your retirement plan savings to an IRA. Another option is to keep your funds in the plan. Keep in mind, though, this may not always be possible. Sometimes your plan may force you to take your dollars out, for example when you reach the plan’s retirement age (normally, age 65) or if you have a small account balance.

What You Need to Know about the Still-Working Exception

Are you nearing retirement age and not looking forward to taking unwanted required minimum distributions (RMDs) from your retirement account? You may be looking for a strategy to delay those distributions. The “still working” exception allows RMDs to be delayed. Will this exception help you? Here is what you need to know.

RMDs, the Still-Working Exception, and the Best-Laid Plans

A required minimum distribution (RMD) from a 401(k) (or other employer plan) must be taken prior to rolling remaining plan dollars to an IRA. An RMD cannot be rolled over, so it must be withdrawn before any rollover is completed. While this concept appears somewhat basic, it is easy to get sideways with the rules. Additionally, unexpected changes in employment, combined with the still-working exception, can retroactively create RMD problems.

5 Things You MUST Know (But Probably Don’t) About the “Still Working Exception”

In general, when you reach age 70 ½, you must begin to take required minimum distributions (RMDs) from your retirement accounts. There are, however, a number of exceptions to this rule. One such exception is commonly known as the “still working exception.” Under this exception, you may not have to take a distribution from your 401(k) or similar plan if...

Still Working and Past Age 70 1/2? Answers to 7 Frequently Asked RMD Questions

We get many questions from those nearing the RMD (required minimum distribution) age of 70 ½ who are still working. We put together a list of 7 frequently asked questions and our answers on this important IRA planning topic.

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