Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Feb 19, 2022 12:42:57 PM

I am 81, still work full time, contribute to 401k. must I take required annual minimum distribution?

0 2 607
2 Replies
Expert Alumni
Feb 19, 2022 1:08:28 PM

No, you might not have to take your Required Minimum Distribution (RMD) from the 401k plan if your plan allows it. But if you have a traditional IRA then you will have to take the RMD from that account.

 

Generally,  for 401k plans you must start taking an RMD on "April 1 of the year following the later of the year you turn 72 (70 ½ if you reach 70 ½ before January 1, 2020) or the year you retire (if allowed by your plan). If you are a 5% owner, you must start RMDs by April 1 of the year following the year you turn 72 (70 ½ if you reach 70 ½ before January 1, 2020)."(IRS)

 

Level 15
Feb 19, 2022 1:59:44 PM

If you are a greater than 5% owner of the company providing the 401(k), you must take RMDs.