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Showing results for tags '242'.
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Facts: 1. Plan year end is 4/30/2017 2.Owner A signed a 242(b) election to delay his RMDs - the 242(b) indicates distributions should commence within 60 days after the last day of the plan year in which he retires 3. Owner A dies in July of 2016 at age 82. 4. Owner has 5 non spousal beneficiaries Questions: 1. When does the distribution need to occur by? Is it June 30, 2017, as per the 242(b) election (60 days after end of plan year)? 2. How much needs to be distributed? Is there catch-up distribution required? The rules are confusing but it seems like you only need to catch-up the contributions is the 242(b) is revoked or modified - this 242 was never revoked or modified. 3. Since there are 5 beneficiaries of differing ages ranging from 30-50 years old, how is the first distribution calculated? (they plan on spitting the account up after the first distribution).
