Stopping RMDs

[Guest babs51]

Have a plan where a non-owner received an RMD in 2003 and 2004, then signed paperwork to stop receiving them for 2005 going forward. Allowed????

[Leopurrd]

It depends. What does your doc say?

There are basically 3 options you can have:

1. Pre-SBJPA rules where 70.5 RMD's are required by all, regardless of ownership;

2. Post-SBJPA rules where 70.5 RMD's are elective for non-owners and required for 5% owners; or

3. Election where your document prohibits 70.5 RMD's for non-owners and requires it for 5% owners;

Sounds like your doc should have option #2.