Riley participates in his employer's 401(k) plan. He turns 70 years of age on February 15,2016 and he plans on retiring on July 1, 2018. When must Riley receive his first distribution from the plan to avoid minimum distribution penalties?

Question

Quizplus · Accepted Answer

Riley must receive his first required minimum distribution by April 1 of the year following the year he retires, which is 2018. Therefore, he must take his first distribution by April 1, 2019.

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