Guest Ted Kowalchuk, CFP, CFS, Posted March 13, 2006 Posted March 13, 2006 I have an 80 y/o participant that retired 12/31/2005 from his employer that was sponsoring a 401(k) profit sharing plan. He was not an owner and therefore was not taking RMDs. He wants to roll his money into an IRA. In mid-Feb 2006 we processed a 12/31/2005 RMD for him, well in advance of the April 1, 2006 date for his first RMD. Do we need to process another RMD for him prior to the rollover?
Guest SueJ Posted March 13, 2006 Posted March 13, 2006 Yes, the new provider will not know what his 12/31/05 balance was in order to calculate the 2006 RMD.
Guest Ted Kowalchuk, CFP, CFS, Posted March 13, 2006 Posted March 13, 2006 What value should I be using for the 2nd RMD?
Bird Posted March 13, 2006 Posted March 13, 2006 You use the 12/31/05 account balance, unadjusted for the distribution that occured in early 2006. Ed Snyder
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