Still Working at 73? The IRS Lets You Skip RMDs on Your Current Employer’s 401(k) but Not on the IRA You Rolled Your Last One Into

Tip: Try a valid symbol or a specific company name for relevant results A pro-grade research workspace with advanced charts, company data and real-time news. Now part of Yahoo Finance Gold.Learn more Still Working at 73? The IRS Lets You Skip RMDs on Your Current Employer’s 401(k) but Not on the IRA You Rolled Your Last One Into You turned 73 in 2026, you're still on payroll, and your HR benefits portal shows a healthy 401(k) balance.

Good news: the IRS says you can leave that account alone. The traditional IRA you built by rolling over a 401(k) from the job you left in 2019? That one has to start paying out.

The rule doing the work here is the **still-working exception** to required minimum distributions. It lives in the tax code at Section 401(a)(9)(C) and it applies only to the qualified plan of the employer you currently work for. Not the IRA down the hall.

Not the 401(k) at the last place. Just the one tied to the W-2 you're still collecting. Normally, the year you hit age 73, the IRS forces you to start pulling money out of tax-deferred accounts on a schedule set by the Uniform Lifetime Table.

Miss a distribution and the penalty is 25% of the amount you should have taken, reducible to 10% if you correct it promptly. The still-working exception carves out one narrow reprieve. If you're employed by the company sponsoring the plan on December 31 of the distribution year, and the plan document allows it (most do, but confirm), you can defer RMDs from that specific 401(k) until April 1 of the year after you actually retire. **The 4% Rule is Broken, Built On A World That No Longer Exists** Every retiree knows about the 4% rule, but it frames retirement as a slow liquidation and still causes retirees with seven-figure accounts to agonize over a dinner out.

There's a different way to run the math that makes more sense today. Build an _income floor_ — dividends, interest, and Social Security that cover your essential bills every month — and you never have to sell shares into a down market just to pay them. Our free reader guide, **_The 4% Rule Is Broken_**, walks through it in about 15 minutes.