Work Longer to Delay 401(k) RMDs

Some of your clients should be made aware that there is a major advantage to simply staying on the job with the employer that has their retirement savings plan.
A little known trick of the trade—the IRS waives the required minimum annual distribution of 3.65% that automatically kicks in when a client reaches 70 ½ for the people who continue to work even a few hours a week for the employer sponsoring the plan.
These withdrawals are taxed in full as income, and can be deferred until a person finally stops working for the employer (as long as the plan itself allows it. Most retirement plans do since it means more assets for the provider to manage.)
Even better, many employers allow older workers to continue to make tax-deferred plan contributions, and if the employer offers matching contributions, this continues as well. This plan of action can help a client build up a sizable additional nest egg.
Another little known hack—individual retirement accounts and plans from earlier jobs—usually subject to required minimum distributions are also deferred if clients’ current retirement plan allows rollovers of these assets.
It’s important to note that clients will still be required to pay taxes on this money eventually—the longer a person works and defers taking and paying taxes on distributions, the bigger the eventual annual RMD when your client retires.
Based on the IRS actuarial assumptions, if a client works at their job until 80, instead of retiring at 70, instead of making 26 ½  years’ worth of RMDs at 7.5% per year, the client would have to withdraw all the money in larger increments over 18 ½ years.
If a client dies before their fund is completely distributed and taxed, the balance remaining goes to their heirs—each of which must pay taxes on their share as income.