Rgoose27

Lou, The last sentence of the Tom’s question #1, can you address it? “But if he had not terminated employment there would be none” My assumption is if the non5% owner were still active he/she would not have RMD’s until the following year (on the IRA only)

Thanks for the replies thus far. Does anybody disagree that the RMD shouldn’t have to be taken, and kicking out the RMD would be a system limitation, NOT an IRS requirement?

Folks, any help is appreciated! 80 year old participant, still active and employed rolled over to an IRA in 2019 (in-service withdrawal). Retirement/termination date is 1/15/20. The 401k vendor automatically sent out a RMD even though participant is active and will not terminate until next year. What can be done with this RMD? Vendor will not take the money back, can it rolled into an IRA within 60 days? What about the tax that was withheld? THANK YOU!