Submitted By: someone
Answered: July 3, 2012 8:30 am

I’m 72 and started a new job with a company that has a qualified retirement plan. I rolled over my old 401(k) to the new plan. Do I have to start taking required minimum distributions (RMDs) from the new plan?

It depends on the terms of your new employer’s plan. Usually you have to start RMDs once you reach age 701/2. However, if the terms of the plan allow participants to postponed RMDs until they cease employment there and you do not own 5% or more of the company, then you do not have to start your distributions now (even though you’re over age 701/2). Check with the plan administrator.

advertisement
Careers
Tax Glossary

Self-employment tax

Tax paid by self-employed persons to finance Social Security coverage. In 2007, there are two rates. A 12.4% rate applies to a taxable earnings base of $95,700 or less and a 2.9% rate applies to all net earnings.

More terms