[gregstax]

I will turn 70 1/2 next March - I will be continuing to work - my company and I both contribute to my 401K. I also have an IRA that was funded from a rollover from a prior company. Since I am not planning to retire for at least 5 more years, will I be required to start pulling the mandatory amount from both the 401K and the IRA or just from the IRA?

[ebaines]

You are required to make the minimum distributions from the IRA, but not necessarily from the 401(k) until you retire. According to the IRS: 401(k) Resource Guide - Plan Participants - General Distribution Rules

Minimum Distribution ... The required beginning date is April 1 of the first year after the later of the following years:

- Calendar year in which you reach age 70½.
- Calendar year in which you retire.

However, a plan may require you to begin receiving distributions by April 1 of the year after you reach age 70½, even if you have not retired. [Emphasis mine]

So talk to your plan administrator to see what the rules are for your specific plan. By the way - you are not required to make these withdrawals until April 2011 (since you turn 70-1/2 in 2010).

[EDIT] - Upon rereadoing the original post, I see you are turning 70-1/2 "next March," which I assume means March 2011. So any minimum distribution isn't required until April 2012.

[gregstax]

Thank you ebaines for your insight as stated I will check with the plan adminsitrator