THE MALDEN ADVOCATE–Thursday, July 3, 2025 Page 19 OBITUARY RMD’S FOR 401(K) PLANS W hen must you begin taking Required Minimum Distributions (RMDs) from a 401(k) plan? You must begin taking RMDs from a 401(k) plan in the year you reach age 73 if you have retired and simply left the 401(k) plan account open. This is no different than for a Traditional IRA account. You can wait until April 15th following the year in which you turn 73 to take your first RMD distribution. However, if you do that, you will be doubling up on the RMD distribution. In other words, you will have to take two RMD distributions during that calendar year. However, if you are still working and you are an active participant in the employer’s 401(k) plan, you do not have to take any RMDs from that 401(k) plan until you actually retire. Upon retirement, it might then make sense to roll over any and all 401(k) plans or 403(b) plans into a Rollover IRA account in order to simplify the management of these retirement accounts, avoid overlap in portfolio positions and also to reduce the burdensome paperwork. Furthermore, you eliminate the risk of certain restrictions found in the 401(k) plan document regarding distributions to beneficiaries in the event of your death. The RMD is based upon the account value as of December 31st in the year prior to you reaching age 73. You look to the IRA life expectancy table pursuant to IRS publication 590-B in order to determine the number of years to divide the December 31st balance by. If, for example, the balance in your 401(k) plan or Rollover IRA plan on December 31, 2024 was $1,500,000, and you turned 73 in calendar year 2025, you would divide the $1,500,000 by 26.5 years to arrive at an RMD of $56,604 for calendar year 2025. If you were still working and the only existing retirement account was your 401(k) plan at your current employer, no RMD would have to be taken until you retire. You can work until any age and still not be required to take an RMD. If you name a spouse as the beneficiary of your 401(k) plan, he or she can establish a beneficiary 401(k) account and then roll it over to his or her Rollover IRA account. Your surviving spouse can then withdraw RMDs based upon his or her own life expectancy. When it comes to children beneficiaries, the “stretch” IRA option has been eliminated under the SECURE Act. Children, prior to the Tax Cuts & Jobs Act of 2017, could roll the 401(k) monies into a Rollover IRA account and stretch the RMDs over their lifetime. This resulted in tremendous tax efficiency and the opportunity to grow the investment account further. Under the SECURE Act, children must now withdraw the account in full by the end of the 10th year following the year of the 401(k) owner’s death. This also applies to Traditional IRA accounts. The tax implications to the children are significant and cannot be overlooked. Joseph D. Cataldo is an estate planning/elder law attorney, Certified Public Accountant, Certified Financial Planner, AICPA Personal Financial Specialist and holds a master’s degree in taxation. Norman V. Lussier Of Malden. Beloved partner of the late Donna Groom for 25 years, passed away at Tufts Medical Center following a battle with cancer on Monday, June 23, 2025. Born in Lowell on January 1, 1951 he was the son of the late Joseph R. Lussier and Claire T. Dionne. He grew up in Dracut and attended Dracut public schools graduating in 1968. After high school Norman attended Radio Electronics Technician School (RETS) then entered the US Navy. After being honorably discharged he returned to Wang Laboratories where he had previously worked part time. Norman worked at Wang until 1999 and remained with the new owners, Getronics retiring in 2021. While at Wang he attended Hesser College graduating with a degree in information systems. Norman had many interests throughout his life. He played the sax and bass guitar and played at various night clubs in the 80s. He also loved long distance bike riding, reading and later in life Norman became interested in shooting sports and joined the Westford Sportsmen’s Club along with his partner Donna Groom. He spent many happy days at the club and especially enjoyed family days where he joined his sister and her family for a fun day of shooting. Surviving Norman is his son Stephen Lussier, wife Evgenia, granddaughter Zara and grandson Oliver of Windham, NH; step sons Albert and John Groom of Malden; his sister Suzanne Morin and husband Dennis of Groton; his 2 nieces Kerrie Jaskal and husband Jason of Tyngsboro, OBIT | SEE PAGE 20
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