# At 75 He Still Has a Paycheck and Skips RMDs

> A 75-year-old worker can skip retirement distributions if they still earn a paycheck, but four hidden rules could trigger penalties.
- Title: At 75 He Still Has a Paycheck and Skips RMDs · 24/7 Wall St.
- Summary: A 75-year-old worker can skip retirement distributions if they still earn a paycheck, but four hidden rules could trigger penalties. Workers over 73 with a…
- Keywords: rmd, 401k, secure 2.0, retirement, tax code, irs, workplace plan, age 73, Still, Paycheck, Skips, RMDs
- Source: 24/7 Wall St. — https://247wallst.com/personal-finance/2026/09/21/at-75-he-still-has-a-paycheck-and-still-hasnt-taken-a-single-rmd-from-his-401k-the-exception-is-written-into-the-law-and-the-ira-down-the-street-doesnt-get-it
- Author: David Beren
- Published: 2026-09-21T13:33:51+00:00
- Read time: 1 min
- Topics: rmd, 401k, secure 2.0, retirement, tax code, irs, workplace plan, age 73
## The Still-Working Exception
Federal law lets workers skip required minimum distributions from their current employer's 401(k) until retirement age if they still earn a paycheck.
## Four Hidden Rules
Four conditions must be met to avoid IRS penalties: the plan must allow the exception, it covers only current employment, it doesn't apply to IRAs, and you can't be a 5% owner of the business.
## IRAs Are Separate
Retirement accounts like IRAs are not covered by the exception; they follow the standard RMD schedule regardless of current employment status.
## 5% Owner Trap
Owners of family businesses often miss the 5% ownership threshold, which can trigger penalties if not checked through IRS attribution rules.
## Rolling Money In
Moving pre-tax IRA balances into a current employer's 401(k) can delay RMDs on the combined balance while avoiding the pro-rata rule.
## Medicare Impact
An unnecessary RMD distribution in 2026 could raise Medicare Part B and Part D premiums by up to $689.90 in 2028.
## Retirement Definition
Full separation from work counts as retirement; part-time work or rehiring does not reset the clock for RMDs.
## Key takeaway

Workers over 73 with a paycheck can delay RMDs from their current employer's 401(k) until retirement, but must meet four conditions to avoid IRS penalties.