My wife is working full time (40 hrs per week). She contributes to a 401k. She required to take a MRD based on the funds in her 401K?

[TomD8 · Accepted solution]

Regardless of her age, if your wife is still working, and her 401K is sponsored by her current employer, she has until April 1 of the year after she retires to take her first RMD. 

[Coleen3]

If she is still working the rules for RMD are different. See the comments from both Superusers for additional information as to how.

RMD stands for Required Minimum Distribution. It's the minimum amount of money you're required to take out of your retirement plan once you turn 70 1/2.

RMD rules apply to all employer-sponsored retirement plans such as pensions, profit-sharing, 401(k), 403(b), and 457(b) plans, as well as Traditional IRAs and IRA-based plans such as SEPs, SARSEPs, and SIMPLE IRAs. However, RMDs are not required for Roth IRAs while the owner is still alive.

Your 1099-R issuer is required to follow RMD rules and regulations, so if you received a distribution and you're at least 70 1/2 years young, you can be almost certain you received an RMD. Check with your plan administrator if you're still not sure.

[Edited 2/5/2019 [6:28 PM]

[dmertz]

If she is still working for the company, no RMD is required for the year unless she was age 70½ or older that year and she is a more-than-5% owner in the company (or unless the plan requires all individuals age 70½ to take RMDs whether or not they are still employed with the company).