RMD Payments

[Guest andmik]

Hello All:

I am having a tough time determining one aspect of a Required Minimum Distribution.

Facts:

Participant in a 401(k) Plan had already begun his RMD payments. He takes part of his RMD for the current year and then passes away mid year without having taken all of his RMD amount for that calendar year.

Spouse is sole beneficiary so I am comfortable with her options in future years (2006 and beyond), but I am unclear on how the remaining RMD amount get distributed from the 401(k) Plan for 2005.

QUESTIONS:

Do they get issued in the deceased participant's name and SSN? In the name of his estate for 2005? or in the name and SSN of the spouse beneficiary?

Any insight will greatly appreciated.

Andmik

[jevd]

My understanding is that after the death of the participant, all distributions are paid to the named or default beneficiary. Mandatory distributions may not be rolled over, therefore, the spouse would be required to take the remaining mandatory distribution and then rollover the remainder if desired.

[Guest andmik]

Jevd,

Thanks for your reply. It makes complete sense since the participant is deceased and the spouse is the sole named beneficiary. The spouse will take the remaining RMD for 2005 and then in 2006 it will be based on her age and statistics.

Sincerely,

Andmik