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
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.Ē
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