401k Required Minimum Distributions (RMD)


Are you required to take the Required Minimum Distribution (RMD) from a 401K if you are still actively employed?

Answer

If you continue to work beyond age 70 1/2, and do not own more than 5% of the business you work for, you may be able to defer taking distributions from your employer sponsored retirement plan until April 1 of the calendar year after the year in which you retire. Please consult with your Plan Administrator to determine your Required Beginning Date.

If you are still working and have other tax-deferred retirement accounts in addition to your current employer’s workplace savings plan, you must satisfy your RMD for those other accounts each year after you reach age 70 1/2.