RMD from 401(k) - Spidell

RMD from 401(k)

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Message Board RMD from 401(k)

This topic contains 1 reply, has 2 voices, and was last updated by Lynn Freer 1 month ago.

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  • #185845
    Anonymous

    We have a situation where a husband/wife have an S Corporation with a 401(k).  They are the only shareholders and only employees.  The husband turns 70.5, so he will have to begin taking RMD’s.

    The client is looking for ways to reduce the RMD.  He is still working, but owns more than 5% of the company, so the working exception will not apply.

    It seems like the only way to lessen the RMD hit would be to continue making contributions to the 401(k).  Are there any drawbacks to doing this?

     

  • #185868
    Lynn Freer
    Participant

    No you can do that. But you also might consider rolling the 401 (k) into an IRA and you can use the IRA to charity and QLAC to reduce taxable RMD. We talk about this in depth in our October seminars. We are in Burbank tomorrow, in N. Cal next week and Garden Grove a week from this Friday. The presentation will also be available as a webinar.