Transferring IRAs and former employer’s 401(k) retirement plans into a current employer’s 401(k) plan can offer a strategy for individuals facing required minimum distributions (RMDs) while still actively working. Once these retirement assets are rolled over into the current employer’s 401(k) plan, they become exempt from RMD requirements, unless the employee holds 5% or more ownership in the company. Most employer plans accommodate rollovers, but other considerations should also be evaluated.
For a more detailed discussion to see if this reverse rollover may benefit you, please contact a ShindelRock tax professional. [1]