jpod Posted August 6, 2018 Share Posted August 6, 2018 Non-5%-owner is well past 70-1/2. Wishes to take an in-service distribution from employer's DC plan and roll to an IRA. (Please don't ask why.) Must some portion of that distribution be withheld as an RMD or can it all go to the IRA? Link to comment Share on other sites More sharing options...
Mr Bagwell Posted August 6, 2018 Share Posted August 6, 2018 Presuming the employee is still active.... I don't see where the employee has met the Required Beginning Date to have to have an RMD so I would say no to RMD and all can go to IRA. Of course, you have looked at the plan document first. :) Just on a practical note, if this was the whole account balance and employee then terminated later in the year, the employee may then have some dollars that should have been RMD. Maybe try talking the employee into taking some cash around the theoretical RMD amount to be cautious. Link to comment Share on other sites More sharing options...
jpod Posted August 6, 2018 Author Share Posted August 6, 2018 employee will remain active well beyond the year of the distribution; perhaps years Link to comment Share on other sites More sharing options...
PensionPro Posted August 6, 2018 Share Posted August 6, 2018 It can all go to the IRA. Those assets will be subject to the RMD rules under the IRA for subsequent years. PensionPro, CPC, TGPC Link to comment Share on other sites More sharing options...
jpod Posted August 6, 2018 Author Share Posted August 6, 2018 Thanks PensionPro. We knew about IRA MRDs; just looking for a sanity check on the plan-to-IRA rollover. Link to comment Share on other sites More sharing options...
imchipbrown Posted August 7, 2018 Share Posted August 7, 2018 Maybe (s)he thinks the Plan's investment returns are sub-par? Link to comment Share on other sites More sharing options...
jpod Posted August 7, 2018 Author Share Posted August 7, 2018 I asked you not to ask why. EHE 1 Link to comment Share on other sites More sharing options...
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