Guest MaryLou Posted October 10, 1999 Posted October 10, 1999 Can a participant NOT a 5% owner who elected to receive the MRD after the 1996 change now elect to stop receiving the distributions?
david rigby Posted October 11, 1999 Posted October 11, 1999 What does the plan say? Sorry to be so blunt, but that is very often the first question to ask? Also, what type of plan is this? May be very easy to deal with this in a DC plan (assuming no J&S language) but not so easy in a DB plan. A great many (DB) plans contain language such that once a benefit begins, its form cannot be altered by the participant or the plan sponsor. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
Guest MaryLou Posted October 12, 1999 Posted October 12, 1999 Sorry, I was asking the question in general. I was thinking of DC plans. I have to present a little presentation on the subject, and the question came to my mind. So I thought I'd ask. Thanks, Mary Lou
Alf Posted October 14, 1999 Posted October 14, 1999 Announcement 97-24 is the only guidance I can think of that is on-point. It states that, under certain circumstances, an election to stop receiving destributions may violate the qualification requirements such as 411(a)(11) and 417. I believe that it is speaking more directly to distributions to people who turned 70.5 before 1995, but I don't see why it wouldn't apply on your example as well.
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