retirement

Required Minimum Distributions for the Self-Employed

Some workers must take RMDs from their retirement accounts at age 70 ½; others can wait.

I'm self-employed and have a solo 401(k). Will I need to take RMDs from my 401(k) if I'm still working in this job after age 70½?

You generally don't need to take required minimum distributions from your 401(k) if you're still working at 70½, but there is an exception: You must start taking RMDs even while working if you own more than 5% of the company. Because you're self-employed and are the sole owner of the company with the solo 401(k), you'll need to start taking RMDs starting at age 70½.

If you are not still working at 70½, you must follow the same RMD rules as with regular 401(k)s -- that is, you generally must start taking required minimum distributions at age 70½. With any 401(k), you can delay taking the first RMD until April 1 of the year after you turn 70½. Every year after that, you must take RMDs by December 31.

For more information about RMDs, see our Required Minimum Distributions special report.

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