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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.


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?

You need to check with company A, since it depends on the plan's rules. Plans are allowed to (but not required to) exempt current employees from RMD requirements. The requirements for the exemption (how much work is required, etc.) should be spelled out in the Summary Plan Description (SPD) for the plan, if it exists.

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?

Yes, you will be required to take an RMD from company A's plan even if you are working for company B. If you are eligible for a 401(k) at company B, they allow rollovers, and they do not require current employees to take RMDs, you could roll the 401(k) from company A into company B's plan to avoid RMDs.

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.

Well that part of the 1040 where you have to enter your SS number - that kind of gives away your age, since the SS administration and the IRS swap data every year. Besides that, you'd lose the step up in your standard deduction that's available you when you turn 65.

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