RMD 70-1/2 Still working

Forum|Forum|6 years ago
September 29, 2019
3 replies
39 views

70-1/2 self employed still working and contributing to a Simple IRA,

do I have to take RMD?

Anonymous

yes you must take an RMD. however, the distribution for the year you reach 70 1/2 can be delayed until 4/1 of the following year but then in that year you must take a second distribution by 12/31 ( reg 1.408-8 Q&A 2)

you can still contribute to your SIMPLE

Required minimum distribution rules apply to all employer-sponsored retirement plans, including profit-sharing plans, 401(k) plans, Roth 401(k)s, 403(b) plans, and 457(b) plans, as well as to traditional IRAs and IRA-based plans such as SEPs, SARSEPs and SIMPLE IRAs. The rules don’t apply to Roth IRAs.

dmertz

Level 15

The "still-working" exception to taking RMDs only applies to qualified retirement plans like a 401(a), 401(k), 403(b), 457(b) plan or the federal TSP, not to any kind of IRA, so yes, you must take RMDs from your SIMPLE IRA even though you are still working. The requirement to take RMDs from the SIMPLE IRA does not affect your eligibility to contribute to the SIMPLE IRA.