Jump to content

postponement of RMD from SIMPLE plan


Guest bmurphy
 Share

Recommended Posts

If a 78-year-old non-5% owner is still employed & participating in a SIMPLE-IRA plan, can they elect to defer their RMD until after they terminate service with the employer?

Link to comment
Share on other sites

The "after retirement" exception is for qualified plans. SEP's are subject to the same RMD rules as for IRA's [i.R.C. Sec. 402(h)(3)]. It's not unusual for an employer to be obligated to make SEP contributions on behalf of employees who are 70-1/2 or older, despite the fact that these individuals are already receiving RMD's from the same SEP.

Lori Friedman

Link to comment
Share on other sites

Guest bmurphy

Thanks for the info. Client became eligible for the plan 1/1/03 & received a 2% no-elective employer contribution earlier this year. She is 78 years old. How is the RMD calculated for this year if there was no 12/31/03 balance to use?

Link to comment
Share on other sites

Balances are no longer adjusted for prior year contributions for RMD purposes. The employee would start distributions in the following year.

JEVD

Making the complex understandable.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...