You’re about to reach age 70 ½. You’re facing Required Minimum Distributions from your IRAs. Want to avoid them? Still working? Here’s how:

Although RMDs are required for IRAs they are NOT required for Qualified Retirement Plans (“QRPs”) such as a 401(k). As such rolling IRA balances into an employer’s QRP will allow deferral of RMDs beyond age 70 ½ as long as you remain employed.

The catch?

(1) The QRP must accept rollovers. Not all plans do.
(2) The QRP must honor the rule. Some QRPs begin payouts at age 70 ½ even if you’re still employed.
(3) You may not own 5% or more of the company for which you work.

It’s also important to consider investment options. Most QRPs limit participants to a handful of (usually lousy) mutual funds. IRAs, conversely, offer virtually limitless options in the form of thousands of mutual funds, hundreds of ETFs, individual stocks and bonds, CDs, etc. Self-directed IRAs go a step beyond and may permit real estate, business interests, etc.