Still Working at 73? The 401(k) at Your Current Job Skips the RMD Entirely. These 3 ETFs Belong in It
Most people at 73 assume every retirement account faces the same RMD clock, but one account sitting at your current job operates under a completely different set of rules that almost nobody uses to its full advantage.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
You’re 73, still drawing a paycheck, and your calendar looks nothing like retirement. Every traditional IRA you own has to start paying out required minimum distributions on schedule, but the 401(k) at the job you hold today follows a different rule. Under the IRS still-working exception, that plan can keep compounding until the year you retire. Three ETFs fit that extra room: the Vanguard S&P 500 ETF (NYSEARCA:VOO) as your core, the WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:DGRW) for reinvested dividend growth, and the iShares Core MSCI Total International Stock ETF (NASDAQ:IXUS) for the global exposure many portfolios at this stage lack.
Know Exactly Where the Still-Working Exception Stops
Treat this as a delay. According to the IRS required minimum distribution FAQs, participants in a workplace defined contribution plan or profit-sharing plan sponsored by their current employer may delay distributions until the year they retire. Once you retire, the clock starts and withdrawals begin.
The boundaries are tight:
- Traditional, SEP, and SIMPLE IRAs get no delay. Owners of those accounts must begin distributions at the required age whether they are retired or still working.
- Plans from previous employers get no delay. The exception follows your current job, not the account type.
- Business owners at or above the IRS ownership threshold get no delay. If you hold an interest in the small business or partnership sponsoring your plan, check this first.
Some workers fold old 401(k) balances into their current plan to bring that money under the same shelter. Whether your plan permits the delay, and whether it accepts incoming rollovers, is governed by your plan document. Confirm both with your plan administrator before moving a dollar.
The still-working exception only delays the bill; it doesn’t erase it. Once you retire, a large pre-tax balance can trigger a painful first-year withdrawal, and we walked through how to reduce that bill years before it arrives in a free RMD guide.
VOO Anchors the Account If You Choose Only One Fund
VOO has tracked the S&P 500 — the 500 largest U.S. companies — since 2010. Its expense ratio is 0.03% per Vanguard’s March 2026 fact sheet, which leaves almost every dollar of return working in your account. Its adjusted price rose 18.57% over the past year and 321.54% over 10 years.
Because you aren’t drawing from this account yet, that growth keeps building. Quarterly dividends, totaling $7.35 per share over the trailing 12 months, reinvest and enlarge the base. If your plan has room for only one fund, this is the default.
DGRW Reinvests Dividend Growth Without Annual Tax Drag
DGRW screens U.S. dividend payers for quality measures such as return on equity and return on assets, then favors companies with dividend growth potential. That tilts you toward durable businesses with the cash flow to keep raising payouts. The fund launched in 2013, held about $16.6 billion in net assets as of June 30, 2026, and charges 0.28%, per its July 2026 prospectus.
The fund pays monthly, with $1.0177 per share distributed over the trailing 12 months, though amounts vary month to month. In a taxable brokerage account, each payment would create a tax bill every year. Inside your 401(k), those dividends reinvest with no annual tax drag. DGRW’s adjusted price gained 12.99% over the past year and 271.82% over 10 years.
IXUS Fills the Global Gap Most Late-Career Portfolios Miss
VOO and DGRW both concentrate in U.S. companies. IXUS tracks the MSCI ACWI ex USA IMI Index, covering thousands of holdings across developed and emerging markets outside the U.S. Its July 2026 filing shows companies in Canada, Japan, China, Sweden, Spain, and Israel, spread across banks, energy, mining, industrials, and technology. The fund held roughly $58.4 billion in net assets as of July 31, 2026.
International stocks have pulled their weight recently. IXUS’s adjusted price rose 22.41% over the past year, ahead of VOO’s 18.57%. It pays semi-annually, distributing $2.80 per share over the trailing 12 months.
Trade-Offs to Weigh Before You Rebalance
Many 401(k) menus skip ETFs entirely. You may need a self-directed brokerage window, or you can look for index funds on your menu that follow the same benchmarks. IXUS also trails over longer periods: its 10-year gain of 146.17% is well below VOO’s 321.54%, and currency swings add volatility. DGRW’s quality tilt has fell behind the S&P 500 over 10 years as well. And the year you retire, distributions begin, so a stock-heavy mix needs a withdrawal plan waiting in the wings.
Still, with a paycheck covering your bills and a plan that lets the money sit, you have compounding time most 73-year-olds give up. A low-cost U.S. core, a quality dividend-growth engine, and a global diversifier put that time to work.
Contact [email protected] for any questions or corrections.