David Peckham Posted August 10, 2020 Share Posted August 10, 2020 Small DB plan just husband and wife. Husband is age 73, so has been taking RMDs. The annual annuity date is April 1st, so husband has already withdrawn his 2020 RMD. Now both husband and wife want to withdraw $100,000 each as CRDs. Is there anything wrong with that? Link to comment Share on other sites More sharing options...
C. B. Zeller Posted August 10, 2020 Share Posted August 10, 2020 Does the plan currently allow for in-service withdrawals? You mentioned the husband's age, but the wife must also be at least age 59-1/2 for an in-service withdrawal, CRD or otherwise. Make sure the distribution is not restricted under either 1.401(a)(4)-5(b)(3) or 436(d). ugueth and Luke Bailey 2 Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co Link to comment Share on other sites More sharing options...
Mike Preston Posted August 10, 2020 Share Posted August 10, 2020 And make sure that he has new accruals that support his $100,000 CRD *OR* you take steps to migrate the existing election to a new one. There are some serious restrictions to the latter. I forget which IRS Notice covers the permissable migrations but I know if you find it then Q&A 14 should be digested. Link to comment Share on other sites More sharing options...
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