When is retirement for 401(a)(9) purposes - last day worked or next da

[Wessex]

A participant's last day worked was December 31, 2001. The participant was age 73 and not a 5% owner. Did this person "retire" on December 31, 2001 with a required beginning date of April 1, 2002 or did she "retire" on January 1, 2002 with a required beginning date of April 1, 2003.

I think the former, but have found nothing in the regulations that specifies either way. The regulations generally say "retired during 1999" or some such. I'm about to research private letter rulings, but I would be very grateful if anyone can provide an answer.

[mbozek]

You need to find out the facts. Dec 31, 2001 was a Monday. Did the participant actually work that day and formally retire as of the end of business or did the participant not work that day and Dec 31st was the date he retired? In my opinion an employee cannot be both employed and retire on the same day. One further question-why do you want to know more-- why not see if the ee was paid for work through 12/31/01. If so assume that the ee retired 1/1/02. Otherwise the ee is liable for 50% tax for failure to take mrd.

[Tom Poje]

but see also form 5329 about the possibility of having the tax waived.

There were a series of Q and A's regarding missed min distribution (Q and A 77-81 under the correction of plan defects)