I encountered a situation as follows: Participant an active participant in a 401(k) plan, past age 70 1/2. She had received an initial MRD, and then deferred, because she was still employed. Now she has retired in 1999 and wishes to leave her money in the plan. When does the MRD have to resume? By 12/31/99? We called the provider, who said 4/1/2000. Which is correct?

Thanks!

4/1/2000 is the new required beginning date. It is the 4/1 following separation from service, which may catch some sponsors by surprise if they are slow in getting their year end census to their recordkeeper.