Solo 401k plan or Individual K and Required Minimum Distributions

Upon reaching age 70 1/2, you as trustee/participant must begin taking distributions from the Solo 401k plan or Individual K pursuant to IRC Sec. 401(a)(9)(A).

The RMD rules were last update in Treas. Reg. 1.401(a) (9)-1 and are applicable to all qualified retirement plans including Solo 401k plans.

As an IRC Sec. 401(a)(9) qualification requirement, a plan, including a Solo 401k , is required to start making RMDs no later than the Solo 401k trustee’s/participant’s required beginning date. The annual Solo 401k plan RMD amount is reported on Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.

Required Beginning Date

The RMD regulations require a Solo 401k plan trustee/participant to start taking distributions no later than his or her required beginning date (RBD) and to continue making distributions over a period not extending beyond his or her life expectancy or over his or her life expectancy and beneficiary of the Solo 401k pursuant to Treas. Reg. 1.401(a)(9)-2, Q&A1.

The RBD for a Solo 401k plan trustee/participant is April 1 of the calendar year following the calendar year in which the trustee/participant attains age 70 1/2 in accordance with Treas. Reg. 1.401(a)(9)-2, Q&A 2(a).

About Mark Nolan

Each day I speak with energetic entrepreneurs looking to take the plunge into a new venture and small business owners eager to take control of their retirement savings. I am passionate about helping others find their financial independence. Having worked for over 20 years with some of the top retirement account custodian and insurance companies I have a deep and extensive knowledge of the complexities of self-directed 401ks and IRAs as well as retirement plan regulations. Learn more about Mark Nolan and My Solo 401k Financial >>