Question for the Money Doctors

Question submitted on Apr 27, 2012.

Question

A 70 years old person is still employed and is a contributory to the 401-k retirement plan at work. Can he postpone his Required Mandatory Distributions from his retirement plan until he/she retires? Where can I file the relevant rules/regulations on this subject?

Answer

He cannot postpone it.  RMDs are required event if he is still employed and over 70 1/2.  Check out IRS Pub 590 or http://www.360financialliteracy.org/Topics/Retirement-Planning/IRAs/Required-Minimum-Distribution-RMD/%28language%29/eng-US  which gives you a calculator on how much his annual RMD should be.  If you need to connect with a CPA Financial Planner in your area, go to www.findapfs.com.

For additional information visit http://www.360financialliteracy.org/