Employees 73+ Can Delay 401(k) RMDs by Meeting Four Specific IRS Conditions
The 'still-working' exception allows employees to delay 401(k) RMDs, but failing to meet four specific criteria—including plan adoption and ownership limits—can trigger unexpected tax bills and higher Medicare premiums.
💡 Key Takeaways
- The still-working exception applies only to the 401(k) of your current employer, not to IRAs or accounts from former jobs.
- Failure to meet all four IRS conditions can trigger unnecessary RMDs, potentially pushing retirees into higher IRMAA tax brackets for Medicare.
- Rolling old 401(k)s or pre-tax IRAs into a current employer's plan may consolidate assets under the exception, provided the plan allows incoming rollovers.
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❓ Frequently Asked Questions
No. The still-working exception applies exclusively to workplace retirement plans like 401(k)s, 403(b)s, or 457(b)s. IRAs are always subject to RMDs once you reach the required age.
If you own 5% or more of the business sponsoring the plan, you generally do not qualify for the still-working exception. Ownership attribution rules also include family members, which can disqualify you unexpectedly.
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⚠️ Disclaimer: This content is for training purposes only and should not be considered financial advice. Always conduct your own research before making investment decisions.