Unless your solo 401k only contains Roth solo 401k funds, which are not subject to RMDs, you cannot keep pre tax solo 401k funds in your account indefinitely. The age at which solo 401k owners are required to commence taking required minimum distributions (RMDs) from their pre tax solo 401k funds increased to 73 starting January 1, 2023, resulting from the passage of the SECURE 2.O Act.
RMD for 2024 Question
If I turned 73 in 2024 am I required to take an RMD by April 1, 2025?
ANSWER:
Yes, if you turned age 73 in 2024 and delayed taking your first RMD (i.e., the 2024 RMD) until April 1, 2024, you are required to take that RMD by April 1, 2025. What is more, you will also be required to take your 2025 RMD by December 31, 2025 since you turned 73 in 2024.
Will you be 73 in 2025?
If you will turn 73 in 2025 you have options regarding taking your first RMD.
Option 1: You can take your RMD by December 31, 2025; or
Option 2: You can delay until no later than April 1, 2026. HOWEVER, if you wait to take your first RMD by April 1, 2026, this will result int having to take 2 RMDs in 2026 (the 2025 RMD and the 2026 RMD): The first by April 1, 2026, which satisfies your required withdrawal for 2025, and the second RMD by December 31, 2026 to satisfy the 2026 RMD.
Are Roth solo 401k funds subject to RMDS?
No. RMDs are no longer required from designated Roth Solo 401k accounts.
How is my Solo 401k RMD calculated?
The Solo 401k required minimum distribution for any year is the account balance as of the end of the immediately preceding calendar year divided by a distribution period from the IRS’s “Uniform Lifetime Table“.
RMD Calculator
You can use our solo 401k RMD calculator located HERE to calculate your annual RMD amount.
For more information on the self-directed solo 401k RMD rules, visit here.
Solo 401k RMD Reporting
For clients of My Solo 401k Financial, we will perform the Form 1099-R reporting, so make sure to complete the following Solo 401k RMD distribution form by 12/31 so that we can collect the necessary information for issuing the Form 1099-R. https://www.mysolo401k.net/solo-401k/required-minimum-distribution-rmd-solo-401k-distribution-form/
