Can You Skip Your RMD If You Are Still Working?

If you are still employed and contributing to your current employer's retirement plan, you may be able to delay taking distributions from that account. The still-working exception allows employees who are still on the payroll to postpone RMDs from their current employer's 401(k) or similar workplace plan past age 73, as long as they do not own more than 5 percent of the company. This exception applies only to the current employer's plan, not to IRAs or to 401(k) accounts from previous jobs. Once you retire or leave that employer, you must start taking RMDs from those accounts by April 1 of the year following your retirement. If you have traditional IRAs, those are not covered by this exception and RMDs are required starting at age 73 regardless of whether you are still working.