Q. I’m self-employed and still working full time. Can I skip RMDs from my SEP? N.R., Ipswich, Mass.
A. No. Generally, you must begin taking “required minimum distributions” (RMDs) from your qualified retirement plans and IRAs after you turn age 70½. Then you must continue taking RMDs for each succeeding tax year. However, you can delay RMDs from qualified plans if you’re still working full time and you don’t own 5% or more of the company. There is no such exception for IRAs. Because your Simplified Employee Pension (SEP) is treated as an IRA rather than a qualified plan, you must start taking RMDs after you turn 70½ whether you are still working or not.
Tip: In any event, full-time workers can’t postpone RMDs from an IRA.