Delay RMDs by rolling IRAs and prior 401(k) balances into current employer’s plan

Rolling over of IRAs (and prior employer’s 401(k) retirement plans) into a current employer’s 401k plan may be a way for those who are subject to required minimum distributions (RMDs) and who are still working to delay having to take an RMD.  Once the previous retirement assets are rolled into the current employer’s 401(k) plan, it’s no longer subject to RMD rules unless the employee owns 5% or more of the company.  The employer’s plan must allow for rollovers into the plan, which most do. There are other factors that should be taken into account as well.

For a more detailed discussion to see if this reverse rollover may benefit you, please contact a ShindelRock tax professional.