retirement

RMD Rules for Older Workers

Still working beyond age 70? Some people can avoid taking required minimum distributions from their retirement accounts; others can’t. Here’s the distinction.

I am self-employed and plan to work for many years at age 70. Do I have to take required minimum distributions from my solo 401(k) while I’m still working, or can I delay taking withdrawals until after I retire?

Even though you can usually delay taking required minimum distributions from an employer’s 401(k) while you’re still working at that job, the rules are different for business owners: You can’t delay taking the RMDs if you own 5% or more of a business. You’ll need to start taking RMDs after age 70½.

If you had a Simplified Employee Pension (SEP) or SIMPLE IRA instead, you’d still have to take RMDs at 70½. Those accounts follow the rules for traditional IRAs, which are subject to required minimum distributions after age 70½, whether or not you are still working.

For more information about the RMD start dates, see this IRS Fact Sheet. You can also get more information from our special report on required minimum distributions.

Most Popular

Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
Should You Take an Extra Big RMD This Year?
required minimum distributions (RMDs)

Should You Take an Extra Big RMD This Year?

Sometimes only taking the minimum IRA distribution can be a costly mistake. When deciding how much to withdraw this year, you need to consider the big…
November 23, 2021
The Berkshire Hathaway Portfolio: All 41 Warren Buffett Stocks Ranked
stocks

The Berkshire Hathaway Portfolio: All 41 Warren Buffett Stocks Ranked

The Berkshire Hathaway portfolio is a diverse set of blue chips, and increasingly, lesser-known growth bets. Here's a look at every stock picked by Wa…
November 16, 2021

Recommended

The Most-Overlooked Tax Breaks for Retirees
Tax Breaks

The Most-Overlooked Tax Breaks for Retirees

Unfortunately, seniors often miss tax-saving opportunities that are available to them. Don't let that happen to you!
December 3, 2021
How 10 Types of Retirement Income Get Taxed
retirement

How 10 Types of Retirement Income Get Taxed

When you're planning for retirement, it's fun to contemplate all the travel and rounds of golf ahead of you, but don't forget about taxes.
December 3, 2021
12 States That Tax Social Security Benefits
social security

12 States That Tax Social Security Benefits

You may have dreamed of a tax-free retirement, but if you live in one of these states, your Social Security benefits may be subject to state taxes.
December 2, 2021
9 Ways Retirees Can Whittle Down Their Car Insurance Costs
car Insurance

9 Ways Retirees Can Whittle Down Their Car Insurance Costs

As more Americans hit the road again, car insurance rates have unfortunately rebounded. Thankfully, there are steps you can take to trim your premiums…
December 1, 2021