Riley participates in his employer's 401(k) plan. He turns 70 years of age on February 15, 2013 and he plans on retiring on July 1, 2015. When must Riley receive his first distribution from the plan to avoid minimum distribution penalties?

Question

Quizplus · Accepted Answer

Riley must take his first required minimum distribution (RMD) by April 1 of the year following the year he retires, which is 2015. Therefore, he must take his first distribution by April 1, 2016.

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