RMDs for rolled over money if still working?

[drakecohen]

If you are still working at a company with a 401(k) plan but your account has money rolled over from either a prior unrelated employer or an IRA would that rolled-over portion of your account be subject to RMDs at age 70-!/2?

[BG5150]

Yes. For the year after the rollover occurred.

[My 2 cents]

Yes. For the year after the rollover occurred.

I may be misinterpreting the question, but I think that the question was more like this:

Employee, age 60, terminates from Company A, and begins working at Company B (unrelated to Company A). Rolls 401(k) money from Company A's plan to Company B's plan. Let us assume that the employee also contributes to the Company B plan.

Time passes, and the participant, still working for Company B, has attained age 70 1/2. Does the employee have to take a minimum distribution on the portion of the 401(k) balance derived from the Company A rollover, or is the fact that the employee is still working for Company B enough to push off having to start taking RMDs?

Would one get a different answer if the employee had not contributed to the Company B plan, so the entire balance in the Company B 401(k) plan is entirely attributable to the rollover from Company A?

[drakecohen]

Another twist. This Kiplinger article from 2013 - last paragraph:

http://www.kiplinger.com/article/retirement/T047-C000-S004-moving-ira-assets-into-a-401k.html

Another candidate for a reverse rollover: someone who is still working at age 70 1/2, when required minimum distributions must start. There's an exception to the RMD rule: A worker at that age does not have to take RMDs from the 401(k) of his current employer unless he owns 5% or more of the company. To avoid RMDs while still working, he could roll his IRA and any 401(k)s from former employers into the 401(k) of his current employer. The current 401(k) plan must allow such rollovers.

[BG5150]

Oh. If you are not subject to the 70.5 withdrawal in the 401(k) plan to begin with, you don't have to take from the unrelated rollover money either.