Does the exception to the required minimum distribution (RMD) rules apply to self-employed persons who are still working and have SEP plans?

You are referring to the “still working exception” for the required minimum distribution (RMD) from tax-deferred retirement savings plans. This exception applies to employer-sponsored retirement savings plans such as 401(k)s and 403(b)s. If you have one of these plans, you can delay the beginning date of your RMD to April 1 of the year following the later: the year you turn 70½ years of age or the year you retire, unless you own more than 5% of the company. The still working exception does not apply to IRAs, nor does it apply to tax-deferred savings plans for self-employed persons such as SEPs and SIMPLEs.

For more information on RMDs, go to FAQ 29117.

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