Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 4
I've picked up a little info that I can skip a Required Minimum Distribution (RMD) from a company's 401 in the year I turn 70 1/2, if I am still working for such company.

Please note - not just any 401(k) RMD can be 'skipped'. The 401(k) that you are attempting to not take the RMD from has to be the plan sponsored by the company that you are working for.

I haven't found any info on what defines "working." Does it have to be 40 hours a week for the year, or can it be part time? Can it be for just a week or two in the calendar year?

All the rules for skipping 401(k) distributions if you are working for the company are specific to that company's plan. So the definition of 'working' would be dependent on what rules the company's plan requires. At a minimum, it would probably have to be enough so that you are qualified to make contributions to the 401(k). So if the company requires that one has to work, say, at least 20 hours per week in order to make contributions, then you would have to be working at least 20 hours a week.

And as far as 'working a week or two during the calendar year' - that's not going to fly unless you are still considered employed during the entire year, even though you only worked a week or two. As soon as you stop working at the company, the RMDs will need to start again.

Why are you so focused on not taking RMDs from your 401(k)?

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.