Guest bmurphy Posted September 30, 2004 Posted September 30, 2004 If a 78-year-old non-5% owner is still employed & participating in a SIMPLE-IRA plan, can they elect to defer their RMD until after they terminate service with the employer?
jevd Posted September 30, 2004 Posted September 30, 2004 SIMPLEs & SEPS follow IRA rules. No Delays. JEVD Making the complex understandable.
Lori Friedman Posted September 30, 2004 Posted September 30, 2004 The "after retirement" exception is for qualified plans. SEP's are subject to the same RMD rules as for IRA's [i.R.C. Sec. 402(h)(3)]. It's not unusual for an employer to be obligated to make SEP contributions on behalf of employees who are 70-1/2 or older, despite the fact that these individuals are already receiving RMD's from the same SEP. Lori Friedman
Guest bmurphy Posted October 1, 2004 Posted October 1, 2004 Thanks for the info. Client became eligible for the plan 1/1/03 & received a 2% no-elective employer contribution earlier this year. She is 78 years old. How is the RMD calculated for this year if there was no 12/31/03 balance to use?
jevd Posted October 1, 2004 Posted October 1, 2004 Balances are no longer adjusted for prior year contributions for RMD purposes. The employee would start distributions in the following year. JEVD Making the complex understandable.
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