# Required withdrawals after 70



## artinstead (Nov 8, 2019)

Okay, so I worked until age 72 and retired. I wasn't required to  make any yearly withdrawals from my 403b while I was still working even though I was over 70, right? So shortly after my official retirement my employer asked me if I could work some part-time hours and I accepted the offer. It works out to about 20 hours per week. So am I still required to make the yearly withdrawals even though I went back to work?


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## Rich29 (Nov 8, 2019)

I had a similar situation, worked full time until 70 and then worked another 2 years part time. I did not start required withdrawals until I fully retired.


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## mathjak107 (Nov 8, 2019)

Be careful ..the longer you delay the bigger the tax torpedo can become ...it may hurt a whole lot if you start triggering Medicare premium increases plus higher tax rates


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## Old Dummy (Nov 8, 2019)

mathjak107 said:


> Be careful ..the longer you delay the bigger the tax torpedo can become ...it may hurt a whole lot if you start triggering Medicare premium increases plus higher tax rates



Yes, be very careful with this. The law is something like ". . . the year after you turn 70½" (or some similar nonsense) you MUST withdraw some minimum amount.

As I recall reading, there are penalties BESIDES THE TAXES DUE if you don't withdraw the required minimum in time.

I would ABSOLUTELY contact a CPA to get your situation clarified.


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## fmdog44 (Nov 8, 2019)

Contact the holder of your 403b and get it in writing. Not aware of the rules for a 403b but with my IRA to miss the RMD date will result in a heavy fine.


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## Camper6 (Nov 8, 2019)

Why not withdraw and use the money?  You can accumulate money but you can't accumulate time.


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## Rich29 (Nov 8, 2019)

It is a good idea to check with an accountant/CPA about deferring RMD’s until fully retired. This is what I did and as long as it was a 401k or 403b and it was with the same employer you can defer.


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## Myquest55 (Nov 8, 2019)

Saw this article today on "MSN Money" - this explains which accounts you need to worry about and what the laws are:

https://www.msn.com/en-us/money/tax...ring-a-tax-penalty/ar-BBWt9RP?ocid=spartanntp


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## Pecos (Nov 8, 2019)

Myquest55 said:


> Saw this article today on "MSN Money" - this explains which accounts you need to worry about and what the laws are:
> 
> https://www.msn.com/en-us/money/tax...ring-a-tax-penalty/ar-BBWt9RP?ocid=spartanntp


That is a good link. My wife will have to start taking her minimum distribution next year, but Vanguard is good about doing the calculation for us.


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## artinstead (Nov 8, 2019)

Thanks all. The only answer I believe I still need is whether my employer requires a minimum yearly RMD after 70 1/2 in spite of still being on the payroll. Don't know why they would but we'll see.


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## Myquest55 (Nov 9, 2019)

artinstead said:


> Thanks all. The only answer I believe I still need is whether my employer requires a minimum yearly RMD after 70 1/2 in spite of still being on the payroll. Don't know why they would but we'll see.


That article above, addresses that specifically.....


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## OneEyedDiva (Nov 9, 2019)

IF you are already contributing to a charity and wish to continue to do so, if your 403 plan will send your required minimum distribution (RMD) directly to that charity on your behalf, your RMD will be tax free. If your RMD is larger than you'd like to donate, whatever portion is sent to the charity of your choice will be tax free.  I'm not aware of the rules regarding continuing to work allowing postponement of your RMD.  Since I like to cover all bases, I'd check with an accountant and the plan administrator.


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## Creek Pirate (Jan 2, 2020)

Your *RMDs* Will Start *age Age 72*, not 70 ½
Staring Jan. 1, 2020, the new bill pushes the *age* at which you need to start withdrawing money from your traditional retirement accounts to *age 72* from *age* 70

https://401kspecialistmag.com/rmd-age-jumps-to-72-in-2020-after-secure-act/


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## Ladybj (Jan 2, 2020)

Rich29 said:


> I had a similar situation, worked full time until 70 and then worked another 2 years part time. I did not start required withdrawals until I fully retired.


 I don't know a lot about that type situation but your post makes a lot of sense,


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