Must both the 1st and 2nd RMD be taken from a distribution from a qualified plan before rollover to an IRA?

[Guest BKH]

A deferred vested taxpayer turned age 70-1/2 in calendar year 2003 and did not take his RMD in 2003. He now wants to rollover his lump-sum distribution from a defined contribution plan to his new IRA. I believe he must first take BOTH his 1st RMD for 2003 and his 2nd RMD for 2004 before he can roll his distribution to his IRA by April 1, 2004. Is this correct? Thanks for the help.

[WDIK]

I'm no expert, but I agree with you.

I think it's just an extension of this discussion.

[BPickerCPA]

BKH,

When did he actually retire?

[Guest BKH]

He retired and terminated employment in 2002.

[BPickerCPA]

He needs to take the first distribution by 4/1/2004. He has to take the second distribution no later than 12/31/2004, but he cannot do a rollover until he takes both the 2003 and the 2004 distributions.