RMD from 401k
I’m retired and have a 401(k) with Fidelity through my former employer. My first ever RMD was last year, but I deferred that distribution to this year and knew I would have to take 2 RMDs this year. I received 1st RMD funds in early March 2020. Do I still have to take the 2nd RMD this year or is not taking it allowed under CARE? If I don’t take it (my preference), will I have to take 2 distributions in 2021?
Terry Says
No, you do not have to take your 2020 distribution (the second one) this year. And no, you do not have to take a double distribution next year.
And I have a suggestion for you. If you’re not still working for this company, why not roll your 40l(k) plan into an IRA Rollover account at Fidelity or Vanguard. You’ll have a much wider choice of investment options there, including a money market fund to keep a portion of your money safe and easily available for future RMDs. Don’t take a check. Contact Fidelity or Vanguard to handle a direct rollover.
