I have been led to believe that if she is still working and contributiong to the plan withdrawel is not needed until she retires. Am I correct?
The plan’s terms may allow her to wait until the year she actually
retires to take the first RMD (unless she is a 5% owner).
Alternatively, a plan may require her to begin receiving distributions
by April 1 of the year after she reaches age 70½, even if she did not
retired. Note: this only applies to 401(k), profit-sharing, 403(b), or other defined contribution plan so if she has IRAs, she may still have an RMD for those.
The Required Minimum
Distribution (RMD) rule, as the name implies, is required by the IRS for every participant in all employer-sponsored retirement plans, beginning in the year the participant turns age 70 1/2, even if they are still working.
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.
In the case of pensions and annuities, the RMD rules are taken into account by the plan administrator when periodic payments are calculated.
Your 1099-R issuer is required to follow RMD rules and regulations, so if you received a distribution and you're at least age 70 1/2, you can be almost certain you received an RMD. Check with your plan administrator if you're still not sure.[Edited 4/13/19 8:19PM]
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