RBD

[Archimage]

For participants that are not 5% owners, do the final regs give an employer the option of selecting the RBD as of the date afterthe EE retires (after 70.5) or can the ER make them begin taking RMD as of the RBD after 70.5; or does the ER have to use the RBD after the later of retirement or age 70.5?

[four01kman]

I''m not sure if you're confused or I'm confused. My recollection is for a non-5% owner who is still working for an employer after age 70 1/2, the RBD will be the first of the month following the employee's termination of employment. Unless, of course, the plan document sets forth a different date; e.g. the first of the quarter following termination of employment.

[Archimage]

Yes, that was my thought too. I was wanting to make sure the ER didn't have the choice to pick in the plan doc to have the RBD after reaching age 70.5 or after termination date.

[Appleby]

Actually,

I have seen a few plan documents that , while the default is the later of April 1 following the year of age 70 ½ or retirement, the document allows the employer to choose, with one of the choices being April 1 following the year the participant reaches age 70 ½.