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.