Riley participates in his employer's 401(k) plan. He retired in 2016 at age 75. When must Riley receive his distribution pertaining to 2016 to avoid minimum distribution penalties?

Question

Quizplus · Accepted Answer

To avoid minimum distribution penalties, the taxpayer must receive the first distribution by no later than April 1 of the year after which the employee turns 70½ or the year in which the employee retires (if later). Because Riley is over 70½ years of age and he has retired he can receive his 2016 distribution no later than April 1 of 2017.

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