RMD Optional?

[Guest M. Martin]

An actively employed participant who is over age 70 1/2 and is not a 5% owner wants to know if they can begin to receive their min. distributions.

The required beginning date defined in the plan document is "April 1st of the calendar year following the later of the calendar year in which the Participant attains age 70 1/2 or the calendar year in which the Participant retires."

The only option selected in the adoption agreement is distribution upon termination (no in-service/normal retirement). In researching the regs it appears that the participant cannot take a distribution until they leave the company.

Is this a correct interpretation? Thank you

[imchipbrown]

Correct, unless you amend the adoption agreement.

I've seen documents that let the 70+ elect to or not to receive RMDs. I also believe that, as the document is written, this would not be called a REQUIRED minimum distribution.