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1. Upon reaching age 70 1/2, is there any difference between an IRA and a 401 regarding the Required Minimum Distribution (RMD)? I have not converted my 401 to an IRA, and I'm just wondering if there are any advantages to not doing so.

The RMD math is the same. You use the same tables. Depending on your state laws, there may be more protection from creditors in the 401 plan.

2. If I have my 401 with company A, and still working either part or full time for company A, am I still required to take a RMD when I hit 70 1/2?

1. You own 5% or more of the company,
2. The plan requires you to start anyway.

3. If I have my 401 with company A, retire from them, but go back to work full or part time for company B...will I be required to take a RMD when I hit 70 1/2?


I trust that telling the IRS that I feel like I'm only 29 probably won't fly with them as a reason to avoid the RMD.


IMHO, the biggest advantages to rolling your plan balance to an IRA are:
1. You can invest your money just about anywhere, in almost any kind of assets. You're not limited to a list of investment options.
2. Shopping around, you can probably save a lot on fees. I went from being charged about $150 per quarter in admin. fees on my self-directed 401(k)account to zero on my IRA. (The balance was about $360,000, so that was a 0.166% charge.) And the money stayed at Schwab!

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