Robin emailed: [One of your articles said] that 401(k) distributions are required when one reaches 70 ½. But what if one continues working full time after that? I have read that one does not have to take any distributions, if working full time, until 75. But what if I continue to work and don’t want to take distributions until I stop working, maybe at age 80. What does tax law say?
There is a “still working” exception to the required minimum distribution rule for 401(k) plans. So if you’re still at your job past age 70 ½, you can delay taking distributions from your employer-sponsored retirement plan until April 1 of the year after you actually retire. (Note that this does not apply to IRAs.) You can do this unless your specific plan requires earlier, age-based distributions or you own 5% or more of the company that runs the plan.