I still work for my company. Does that automatically let me delay its retirement-plan RMDs?

The still-working exception to employer-plan RMD timing generally does not apply to a 5% owner under the applicable ownership rules. Continuing to work for the company therefore does not automatically defer distributions. Age, attribution, plan terms and account type must be considered for the relevant year.

A specific business-owner situation

A majority owner remains employed well past the usual distribution age and assumes the employee retirement exception applies. Ownership can prevent that exception even while the business remains active.

Illustrative example, not a client result.

What to establish before filing

1. Determine ownership including attribution.
2. Apply current RMD age and timing rules.
3. Confirm plan terms and account categories.

Which fact changes the answer?

Ownership through family attribution can matter even when direct ownership is small. IRA rules also differ from the employer-plan exception.

A mistake to avoid

Do not treat the exception available to some nonowner employees as universal.

Records that support the decision

• Ownership history.
• Birth date and retirement status.
• Plan RMD calculation.

The decision to document

Obtain a year-specific RMD schedule from the administrator before deciding to leave all funds in the plan.

Business-owner tax planning and preparation scope · Discuss advisory scope with AE

Related questions

• An employee's 401(k) loan defaulted. Is that the same as a plan loan offset eligible for rollover?
• An owner received a required minimum distribution. Can we roll it into another retirement account?

Sources and editorial context

• IRS Publication 560: small-business retirement plans
• IRS Publication 575: pension distributions and plan loans

General educational information prepared with AI assistance. No individual professional review is claimed. Apply the relevant tax-year rules to the actual records. Editorial policy · AI disclosure.