401k participants in traditional 401k plans (full-time employer 401k plans) are not required to start making required minimum distributions (RMDs) from their 401k once they turn age 73 if they are still working for the employer that sponsors the 401k plan.
However, this 5% RMD waiver does not apply to self-employed solo 401k plans because a solo 401k is for onwer only businesses.
See IRC Sec. 416(i) defines a 5% owner as follows:
Incorporated (e.g., S-corp or C-corp) – A five-percent owner is any person who owns or is considered as owning more than five percent of the outstanding stock of the corporation or stock possessing more than five percent of the total combined voting power of all stock of the corporation.
Unincorporated (e.g., sole proprietorship and LLC) – A five-percent owner is any person who owns more than five percent of the capital or profits interest in the employer.
As a result, the RBD is April 1 of the calendar year following the calendar year in which the employee attains RMD age (Treas. Reg. 1.401(a)(9)-2, A-2(b)).
In sum, while SECURE 2.0 delayed RMDs to age 73 and to age 75 starting in 2033, the act did not change the required RMD date for those who own 5% or more of the business from having to take RMDs from their pre tax solo 401k funds. https://www.mysolo401k.net/mycommunity/forums/discussion/age-restrictions-on-solo-k/#post-84582
Side note: RMDs do not apply to Roth solo 401k plans starting for 2024 and later years.
