Assuming that your husband's current employer allows transfers from workers' prior employer's 401(k) plans (you will need to check on this), then, yes, your husband could make a transfer of assets into his current employer's plan. The best way to do this is to make a "custodian-to-custodian" transfer so that he does not have to take possession of the money personally. Once the funds are transferred into the current employer's 401(k), required minimum distribution (RMD) withdrawals are not required until April 1 of the year after the year that he actually retires.

RMDs are the minimum amount required to be withdrawn from a tax-deferred employer retirement savings plan and are based on the participant's age and account balance. RMDs are based on the total of all the money that someone has in tax-deferred accounts, so be sure to add account balances together if you have more than one tax-deferred account that must be factored into the calculation.

Note, however, that if his current employer does not permit 401(k) rollover deposits and the funds are transferred to a rollover IRA instead, RMD withdrawals will be required no later than April 1 of the year following the year that he turns 70½.

We would like your feedback on this Personal Finance Frequently Asked Question.