Can you stop Required Minimum payments?

[FundeK]

Participant is not a 5% owner and is still actively employed. He took RMDs in 2001 and 2002. He decides he no longer wishes to take RMDs. Can he discontinue the payments? Here is my logic (or lack of): (Assume plan allows participant to begin RMDs when he hits 70 1/2. Also assume plan allows 59 1/2 withdrawals.) Participant techinically has not hit his required beginning date because he has not retired and is not a 5% owner. Could we classify the 2001 and 2002 payments as 59 1/2 withdrawals and not issue him any additional payments until he retires from the company?.

Thanks for you help.

[Mike Preston]

Depends on what the document says. What does it say? Also, what forms were signed by the participant when the distributions were made?

There is no blanket exception available that allows one to retroactively re-cast distributions.

[FundeK]

No form was signed by the participant. The RMDs were forced payments. We believed the participant was terminated. The participant received a letter (both years) telling them that if they did not respond we would force their RMD payment. They did not respond either year, and they cashed the checks. The plan does allow for 59 1/2 withdrawals.

I have it stuck in my head that if you start RMDs, you can not stop them ever. Is this true?