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Level 2
posted Dec 16, 2021 11:12:23 AM

RMD's can be deferred if still employed at 72. Does consulting and receiving 1099''s qualify as "employed" and allow RMD deferral?

The tax code states RMD's can be deferred if "employed", but one can't own more than 5% of the business.  Does consulting and receiving 1099's qualify as "employed"?  Does the 5% rule apply to self-employed consulting? 

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3 Replies
Level 15
Dec 16, 2021 5:21:39 PM

If you are talking about a 401K at a job where you are still currently an employee then you are not required to take an RMD as long as you are still employed with that employer.   

Level 2
Dec 19, 2021 7:02:37 AM

No, I am not talking about a 401K at a job where you are still currently an employee.  I am asking about being a consultant and getting 1099's as a self-employed consultant that files consulting income and expenses on schedule C.  Does this constitute "employment" for the treatment of deferring RMD's?

Level 15
Dec 19, 2021 7:16:57 AM

No.