Submitted By: Anne
Answered: August 27, 2013 8:30 am

I am 75 and still working. I have a 401(k) with my current employer, as well as two 401(k)s with prior employers. What are my required minimum distribution responsibilities?

Check with the plan administrator of your current employer to see whether the plan allows you to postpone RMDs until you retire. (This assumes you don’t own more than 5% of the company.) If the plan allows for the postponement, no RMDs need be taken from that 401(k). However, even though you are still working, you must take RMDs from each of the other 401(k)s. If you have not done so yet, you face a 50% penalty. Talk with a tax advisor to help you sort out your problem. You may be able to get the IRS to waive the penalty.

Tax Glossary

Health reimbursement arrangement (HRA)

Employer established account that provides tax-free reimbursements to employees for deductibles and other expenses that could be taken as itemized deductions.

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