Riley participates in his employer's 401(k) plan. He retired in 2017 at age 75. When mustRiley receive his distribution pertaining to 2017 to avoid minimum distribution penalties?

Question

Quizplus · Accepted Answer

According to IRS rules, individuals who retire at age 70.5 or older are required to start taking required minimum distributions (RMDs) from their 401(k) plan no later than April 1 of the year following the year in which they retired. Since Riley retired in 2017 at age 75, he must receive his distribution pertaining to 2017 no later than April 1, 2018. Choosing option B or C would result in penalties, and option D is not applicable since it is after the deadline for 2017 distributions.

Riley Participates in His Employer's 401(k) Plan