Minimum Distribution

[Guest amboyd]

If a minimum distribution was made to a participant from an ESOP that only provided for lump sum distributions - can the minimum distribution be viewed as a "erroneous" distribution? Can the participant return the distribution to the ESOP and then receive a lump sum distribution? Could the participant then request a lump sum rollover into an IRA? Does the original "erroneous" distribution prevent the ability for the participant to make a rollover distribution? Lots of questions.

[QDROphile]

What does the plan document say? If the plan makes only full lump sum distributions, then the entire balance should be distributed at the required distribution date. Rather than return the "minimum,' the plan should simply be distributing the remaining balance.

Assuming no unusual plan features, the amount that is required to be distributed by 401(a) (9) for the year is not rollable, but the remainder of the distribution is rollable (keeping in mind the rules for minimum distribution for the next distribution year and rollovers).