Taking RMD out of 40l(k) if still working for the company?
I was listening to WGN as you talk to Jon today about taking money out once you’ve turned 72 I’m still working at the same place that I’ve been putting money into when I called Fidelity they said as long as I was still working there I didn’t have to take money out and I am still working there but listening to you. You didn’t say anything about if you were still working I am 74 as of 2022. what is this correct or do I need to take money out?
Terry Says
You get a special exception to the rule. Read this from Fidelity:
You may qualify for an exception from taking RMDs from your current employer-sponsored retirement account, such as a 401(k), 403(b), or small-business account, if:
You’re still working
You do NOT own more than 5% of the business you work for
You have an employer-sponsored retirement account with the business you work for
If you meet all the criteria above, you may delay taking an RMD from the account until April 1 of the year after you retire. Keep in mind that this does not apply to IRAs or other accounts you may hold with companies you no longer work for.
