July 2011

 

Ask a trust officer:

Exception on required distributions

 

DEAR TRUST OFFICER:

 

When I reached 65, I decided to cut my hours instead of retiring.Now Iím 71 and still going strong.Do I have to start taking 401(k) distributions?Iíd rather not. óDELAYED FULL RETIREMENT

 

 

DEAR DELAYED:

 

Required minimum distributions from your 401(k) plan must begin by April 1 of the year after the later of reaching age 70 Ĺ or retirement.So it sounds like you can skip the minimum distributions for now.However, if you are a 5% owner of your employer, or ever have been a 5% owner, you donít have the option to wait.Once minimum distributions have begun, they canít be stopped, even if you decide to ďunretire

 

Do you have a question concerning wealth management or trusts? Send your inquiry to tormey@pgbank.com.

 

 

 

 

(July 2011)

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