Frequently Asked Question

February 14 2007 | Filed Under ยป

I'm 70.5 and still working for my own company. Can I defer starting my required minimum distributions?

The option to defer starting your required minimum distribution (RMD) beyond age 70.5 is available only if the individual is not a 5% owner of the business. Five percent owners must begin RMDs by April 1 of the year following the year they reach age 70.5.
A 5% owner is defined as follows:
  1. If the employer is a corporation, any person who owns more than 5% of the outstanding stock of the corporation, or
  2. If the employer is not a corporation (unincorporated), any person who owns more than 5% of the capital or profits interest in the employer.

If you fall into either of the two categories, you are a 5% owner and should begin your RMD by April 1 of the year following the year you reach age 70.5.

To read more, check out Avoiding RMD Pitfalls.

Question answered by Denise Appleby, CISP, CRC, CRPS, CRSP, APA
by

Denise Appleby

Denise Appleby
Denise Appleby is founder and owner of Appleby Retirement Consulting,which provides technical consultation, content, coaching, writing, editing and training services on related topics.


With more than 14 years of experience in the IRA and defined-contribution plans fields, Appleby has held several senior retirement-plan related positions with Pershing LLC, which included vice president of plans products and services, retirement plans manager, trainer, training manager, compliance consultant, technical help desk manager and writer.
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