# The 'Still Working' RMD Exception That Can Delay 401(k) Withdrawals — But Not IRA Withdrawals
Workers who remain employed past age 73 now have a valuable tool to delay required minimum distributions from their 401(k) plans. The "still working" exception allows eligible employees to postpone RMDs from their current employer's retirement plan as long as they continue working there and don't own more than 5 percent of the company.
This exception stems from the SECURE 2.0 Act, which also raised the RMD age from 72 to 73 starting in 2023. The benefit applies only to 401(k)s, 403(b)s, and similar workplace plans. Traditional IRAs do not qualify for this exception, meaning IRA owners must start taking RMDs at age 73 regardless of employment status.
The mechanics matter here. If you work past 73 at Company A and your company plan allows the exception, you can skip RMDs from that specific plan while still working. However, you cannot apply this exception to old 401(k)s from previous employers or to any traditional IRA balances. Those distributions remain mandatory.
This creates a planning opportunity for high earners and those with substantial retirement savings. By delaying 401(k) RMDs, you keep more money invested longer and potentially reduce your taxable income in your early retirement years. You also lower the risk of being pushed into higher tax brackets or triggering Medicare premium increases tied to modified adjusted gross income.
The catch: not all employers have adopted this exception in their plan documents. You must check with your plan administrator to confirm eligibility. Some smaller companies or plans with restrictive language may not offer it.
For those with multiple retirement accounts, the strategy becomes layered. You might delay your current 401