Dear Fix My Portfolio, I retired from the U.S. Postal Service in 2004 and have a yearly pension from the Office of Personnel Management (OPM). I also work part time at a big hardware chain and have a portion of my salary placed in the company’s 401(k). I have been working there for four years and have around $10,000 in the plan. I also use 20% of my salary to buy company stock. My concern is due to my age of 75, am I required to take out money as an RMD? Sam
Got a question about the mechanics of investing, how it fits into your overall financial plan and what strategies can help you make the most out of your money? You can write me at [email protected]. Dear Sam, The easy answer to your question is no—you’re not required to take money out of your current workplace plan if you’re still working. But as always with the IRS, there’s a lot more to it than that. If you’re still working, no matter if you’re 75 or 105, you can still contribute to the company’s 401(k) plan, and you don’t have to take money out of the account for required minimum distributions, which the IRS requires so you start paying tax on your deferred savings. You only have to start taking RMDs by April …