Clarifying regulations on 401(k) distributions

To the editor:

The financial advice columnist in the Aug. 25 Eagle gave the wrong information regarding required distributions from a 401(k) plan.

As long as you are actively at work, and you meet some other criteria, you do not have to take required minimum distributions (RMD's) from your 401(k) though you are older than 70½. You do have to take the RMD's out of any regular (as opposed to Roth) IRA's you may also have. Not sure why your expert did not know that, but then we all make mistakes.

Here is the appropriate paragraph from Kiplinger's retirement planning guide from the web which gives the correct information:

"You must take required minimum distributions from your traditional IRAs after you reach age 70½, regardless of your work status. But you can delay tapping your 401(k) or similar employer-based retirement plan until after you stop working."

Gary Kobran, Great Barrington The writer is vice president, financial services, Wheeler & Taylor Insurance.



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