dmb Posted June 16, 2005 Posted June 16, 2005 A participant in a PS plan has turns 70 1/2 in 2005. He has terminated employment and is preparing to roll his account balance into an IRA. Can he roll his entire account balance into his IRA and take the RMD by 4/1/06 or must he take his RMD prior to rolling the balance into his IRA?? Thanks.
jevd Posted June 16, 2005 Posted June 16, 2005 Prior to rolling or you will have an ineligible rollover in the amount of the RMD. RMDs cannot be rolled over. JEVD Making the complex understandable.
david rigby Posted June 16, 2005 Posted June 16, 2005 Are you sure the RMD applies? 5% owner? 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.
dmb Posted June 16, 2005 Author Posted June 16, 2005 The RMD applies, he terminated employment in the prior plan year.
jevd Posted June 16, 2005 Posted June 16, 2005 If it is the year of termination, it applies to all regardless of common-law vs 5% owner. JEVD Making the complex understandable.
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now