LUMP SUM DISTRIBUTIONS AND 10-YEAR AVERAGING.

[KJohnson]

I don't have the cites handy but I looked into this once before and there are PLRs which state that if a participant is taking minimum required distributions while still employed, this does not prevent any subsequent payment at separation from service from being a lump sum and thus eligible for 10 year averaging if the other requirements for averaging are met.

[This message has been edited by Dave Baker (edited 02-23-2000).]

[Guest zallmark]

A PERSON I KNOW IS PAST 7O 1/2 AND HAS TAKEN 3 REQUIRED DISTRIBUTIONS FROM A KEOGH PLAN. HE NOW WANTS TO WITHDRAW THE

ENTIRE remaining BALANCE IN A LUMP SUM. CAN THAT PERSON ELECT 10 YEAR AVERAGING OR DOES PREVIOUS MANDATORY DISTRIBUTIONS DISQUALIFY HIM?

THANK YOU.

[Guest zallmark]

DOES ANYONE HAVE A CITE TO SUPPORT K, JOHNSON'S OPINION?

[KJohnson]

Try 9143078 and 9052058