401K RMD for part time employee

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Topic Author
nickfrank
Posts: 26
Joined: Tue Feb 23, 2010 1:39 pm

401K RMD for part time employee

Post by nickfrank »

I am 71 years old and started taking my IRA RMD last year and since I was still employed did not take it from my 401K. This year
I reduced my work hours to 24 per wk. but still contribute to the 401K. Do I need to take RMD distributions from my 401K now that I'm a part time employee.

Nick
Topic Author
nickfrank
Posts: 26
Joined: Tue Feb 23, 2010 1:39 pm

Re: 401K RMD for part time employee

Post by nickfrank »

I really need help with this.

Nick
chaz
Posts: 13604
Joined: Tue Feb 27, 2007 2:44 pm

Re: 401K RMD for part time employee

Post by chaz »

Go to www.irs.gov and look in Pub 590.

Good luck.
Chaz | | “Money is better than poverty, if only for financial reasons." Woody Allen | | http://www.bogleheads.org/wiki/index.php/Main_Page
Alan S.
Posts: 9899
Joined: Mon May 16, 2011 6:07 pm
Location: Prescott, AZ

Re: 401K RMD for part time employee

Post by Alan S. »

This is a question that only your plan administrator can answer. The IRS will generally agree to the plan's definition of how many hours over how long a period of time will allow you to be considered "still employed".
There are also a few plans out there that require employees to start RMDs at 70.5 whether you are fully employed or not, but they are rare.

You should seek confirmation for both questions from the plan administrator. The IRS pretty much leaves RMD administration up to the plans in contrast to your IRA RMDs.
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