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RMD for an owner


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Guest Elfman
Posted

Father owns 2 shares of 51 in company; wife owns 3 shares of 51; children own the balance of shares; Father just turned 70 1/2 and is still receiving comp as an employee. Does the father have to take RMD from the 401k since he is less than a 5% owner, or does family attribution apply since his wife also owns 3 shares. He would like to not have to take a distribution at this time.

Posted

The determination of ownership for 401(a)(9) is under IRC 318. These rules attribute ownership from children and of course the spouse. He is > 5% owner and must get his RMD.

"What's in the big salad?"

"Big lettuce, big carrots, tomatoes like volleyballs."

  • 3 weeks later...

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