An individual (76 yrs old) lost her job in Nov. 2008. She will roll her 401 K into an IRA. She has to take a minimum distribution in 2008 from her 401 K based on the 401 K account balance 12/31/2007 --Is this correct?
-
-
No. Assuming that the losing of one's job at that age is treated the same as if she had officially retired, she must take her first RMD by April 1, 2009. (Code ยง401(a)(9)(A))
Having said that, I'm not sure if a layoff at age 76 is the same as "retirement." If she gets a job elsewhere and rolls her retirement funds into the new employer's plan, she may be able to defer distributions even longer ... if she really wants to do that.Roland Slugg
"I do what I can." -
Minimum Distribution
Thanks for your reply. If she waits until April 1, 2009, she would have to take two distributions for 2009 which I am sure she does not want to do.Comment
Comment