RMDs and Rollover to IRA

[Archimage]

I have a participant who is rolling over his balance to a traditional IRA. This participant is over 70 1/2. Can the RMD for 2002 (based on the 12/31 balance) be paid after it has been rolled over or does it have to be paid before the account is transfered?

[Earl]

a minimum distribution is required and can not be rolled over. The distribution of his full account balance would have two parts, the required amount (not rollable) and the balance (rollable).

If a minimum distribution is required in any year all amounts distributed during that calendar year are treated as required minimum distributions and not eligible rollover distributions, until the required minimum distribution has been made [Treas Reg § 1.402©-2, Q&A 7]