Topic Archive: RMDs

DWC News Update: House Passes the SECURE Act

DWC | 05/24/19

-A breakdown of breaking news from DWC's Managing Partner, Keith Clark

If you are reading the mainstream press, the SECURE Act being signed into law is just around the corner.  While the overwhelming bi-partisan approval in the House of Representatives is an important (and increasingly rare) development, there are still a number of steps that must occur before it becomes law:

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Can We Suspend RMDs for a Rehire?

DWC | 11/13/18

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 a non-owner participant in our 401(k) plan who is age 74 and retired in 2014.  That means that he has already been taking required minimum distributions for the last few years. We just recently rehired him in October 2018. Now that he is re-employed he has inquired as to whether he can suspend his RMDs this year.

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Can a Participant Get a Jump on RMDs & Start Taking Them a Few Months Early?

DWC | 11/6/18

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

One of the non-owner participants in our 401(k) plan will be turning 72 in April of 2021.  The participant knows her first RMD is due no later than April 1, 2022, but she has asked whether she has to wait that long to actually withdraw the money. 

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How Should a Plan Sponsor Handle Required Minimum Distributions For Missing or Nonresponsive Participants?

DWC | 01/16/18

Facts

One of our employees retired on July 31, 2017 at age 73.  During her tenure with the company she was an active participant in the 401(k) plan, accumulating a balance while having never taken a distribution to date.  Now that she’s terminated, I understand she’s subject to required minimum distributions, with the first one due by April 1, 2018.

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Can a Company Owner Withdraw More than the Required Minimum Distribution After Age 70 1/2?

DWC | 09/5/17

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

One of the owners of our company is 75 years old. She remains actively employed by the company and does not show any signs of cutting back or quitting any time soon. She has accumulated a significant account balance in the 401(k) plan and has been taking her required minimum distributions (RMDs) each year since she reached the RMD age requirement.

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