Belgarath Posted June 9, 2017 Share Posted June 9, 2017 Client first institutes a DB plan after attaining age 70-1/2. Has a 3-year cliff vesting schedule (to delay RMD's). Suppose the end of the 3rd year is 12/31/2017. Must the first annuity payment commence by 4/1/2018, or 12/31/2018? My reading is that he has until 12/31/2018, but I can see an argument for 4/1. Particularly if taking an annual annuity payment, it is hard to see how it really matters, since he would receive it all in the 2018 tax year anyway, but that's a separate issue. The later date seems a bit easier administratively, since the vested accrued benefit as of 12/31 often isn't known until later in the following year anyway... Link to comment Share on other sites More sharing options...
K2 Posted June 9, 2017 Share Posted June 9, 2017 I don't see 4/1 factoring into this at all. He is past his RBD, the only reason he wasn't paid is that is vested AB was zero. Lou S. 1 Link to comment Share on other sites More sharing options...
Belgarath Posted June 9, 2017 Author Share Posted June 9, 2017 Thanks - that was exactly my understanding as well. But always nicer to hear that someone agrees! Link to comment Share on other sites More sharing options...
Dougsbpc Posted August 16, 2017 Share Posted August 16, 2017 If the participant worked 1,000 hours per year for each of the three years then the participant would have a vested accrued benefit before December 31, 2017. Wouldn't this require an RMD by December 31, 2017? Lou S. 1 Link to comment Share on other sites More sharing options...
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