Leaderboard

I am with duckthing and/or your description is unclear. What exactly does the plan say? Does it say that someone who has to take an RMD can take a distribution in excess of the RMD also? If so, than doesn't the person have to be required to take an RMD before they can take a withdrawal? You seem to be saying a withdrawal can trigger an RMD. I am not sure how that works as that isn't a requirement under the law for an RMD.

DCRet24, if the participant's account has no illiquid or exotic asset and everything is mainstream investment fund shares or units, and all are readily redeemable (and available for purchase), does it matter how investments are redeemed to raise money or an amount to pay or segregate the alternate payee's portion? After the alternate payee's portion is paid or segregated, could the participant, under the plan's investment and service arrangements, reset his account to whatever investment mix he prefers?

Pension RC, if this participant’s question is whether a distribution (if not rolled over) is or isn’t subject to an additional income tax on a too-early distribution, sorting out what “the date on which the [participant] attains age 59½” means might involve a series of questions: Considering the payer or other service provider that does the Form 1099-R, what measurement rule would it (perhaps by using software) apply, likely using the plan’s records of the distributee’s birthdate and the distribution’s date, to discern whether the distributee had or had not attained age 59½ on the distribution’s date? If a Form 1099-R would code the distribution as an early distribution, is the distributee ready to file his tax return based on a position inconsistent with the Form 1099-R? If the IRS detects a mismatch and asks for the taxpayer’s explanation, how confident would he be in defending his tax-return position?

Similar discussion:

Here is a brief summary from a session at the 2016 EA Meeting. Mike Session 505 2016 EA.pdf

Ouch