Topic Archive: Independent Contractor

Are RMDs Required for a Retiree Turned Independent Contractor?

DWC | 11/27/18

This QOTW has been updated to reflect changes made by the SECURE Act, which was signed into law on December 20, 2019.

Participants who were born on or before July 1, 1949, are required to start taking their RMDs in the year they turn 70 ½.  Those born after that date are subject to RMDs on reaching age 72.

Facts

We have an employee who attained age 70 ½ earlier in 2018 and will retire by the end of 2018. However, she has agreed to enter into a contract to provide services to our firm and will be reclassified as an independent contractor on December 1, 2018.

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