RMD used as catch up contribution
I am 72 and began SS at 65. Hubby began SS at 70. April 2025 he turned 73 and continues working part time w/employer that holds his 401K which he still contributes. He has an old very small bank acct. IRA earning pennies. Another rollover IRA from prior employer. We’ve just sorta let those accts sit. We know since he’s still employed we can leave the 401K out of the RMD calculations. Can he take the required RMD from the two old accts, pay the required tax on it of course, BUT as we don’t need the funds yet can he use those RMD withdrawals as a catch up contribution into his 401K? Thank you for your help!
Terry Says
His 40l(k) contributions must come out of payroll. But he could certainly increase his contributions if allowed, and use the RMD money for other purposes.
And since he is still working, he could open a new Roth IRA with the money he must withdraw.
But I think it’s time to do a rollover of those IRAs into one account.
REad this: https://www.terrysavage.com/rollover-now/
