I am self-employed and plan to work for many years at age 70. Do I have to take required minimum distributions from my solo 401(k) while I’m still working, or can I delay taking withdrawals until after I retire?
Even though you can usually delay taking required minimum distributions from an employer’s 401(k) while you’re still working at that job, the rules are different for business owners: You can’t delay taking the RMDs if you own 5% or more of a business. You’ll need to start taking RMDs after age 70½.
If you had a Simplified Employee Pension (SEP) or SIMPLE IRA instead, you’d still have to take RMDs at 70½. Those accounts follow the rules for traditional IRAs, which are subject to required minimum distributions after age 70½, whether or not you are still working.
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For more information about the RMD start dates, see this IRS Fact Sheet. You can also get more information from our special report on required minimum distributions.
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