401K Transfer and RMD

Forum|Forum|3 years ago
February 17, 2023
3 replies
33 views

If I transfer my 401k to an IRA do I first need to take the RMD from the 401K? Or will it just increase the RMD I need to take from the IRA? @dmertz ?

Not A Product Question

dmertz

Level 15

The 401(k) RMD must be satisfied before rolling over the remainder of the 401(k) to an IRA. The 401(k) plan should force this, make sure that they do.

Be sure to roll the remainder over by direct rollover to avoid mandatory tax withholding. The 401(k) plan is required to offer that option.

VolvoGirlAuthor

Level 15

Thank you, VG

Garuda134

Level 2

I'm in the middle of a traditional IRA rollover from the TSP (similar to 401K) into a new Vanguard traditional IRA account. For me it was a two step process. 1. withdraw the 2023 RMD, which I had sent via ACH to my bank. 2. transfer (rollover) the remaining funds into the new IRA account which was set up by Vanguard prior to requesting the rollover.