RMDs

[doombuggy]

Ok, I have been doing distributions for many years but I am drawing a blank right now (it must be because I have been waiting on some nationwide reports for the better part of an hour...)

I have an plan that has a 9/30 PYE who has a participant that turned 70 1/2 this year. I think this partiicpant is the father of the owner, but I will need to verify this. Would he be required to take the RMD due to the atribution of ownership?

[stephen]

Yes. The 70 1/2 year old father of the owner would be required to take an RMD due to attribution of ownership.

[doombuggy]

That's what I thought. He is also retired, so he has to take it no matter what.

I was reading The ERISA Outline book and I think I am confusing myself. He turned 70 1/2 in 2006 and the plan is going to be valued for 9/30/06. I should be using the 9/30/05 balance for this distribution, whihc he must take by 4/1/07 - right? (insert cross-eyed emoticon here)

[stephen]

I should be using the 9/30/05 balance for this distribution, which he must take by 4/1/07 - right?

Yes-

[Jim Chad]

This may be being too picky, but with all of the dailly val plans out there, I would say:

yes, unless there is a later valuation in calendar year 2005, for instance a 12-31-05 valuation.

[doombuggy]

I tried to edit my original post in that RMD thread I started, but couldn't.

I found out yesterday that the guy I was working on the RMD calcs for is actually dead and has been for many years! Apparently, he died in 1994. The TPA firm I work for started the R/K for this plan in 2004; this is my first year assigned to this plan. My boss just called from the broker's office asking why I sent out an RMD form for a dead person (well, duh, i didn't know he was pushing up daisies). She mentioned that the account belonged to his wife (the owner's mom). Then why is he listed?? This plan is not daily, btw, it is a profit sharing plan that is valued annually and the money is pooled.

I always thought (over the past 16 years) that you had to disburse a dead participant's account in a plan of this type within 5 years. If the account has been "retitled" to his spouse, I have no record of such. Is that doable? I think she may also be a former employee, but I am not sure.

What can I do to fix this mess that was dumped on me....any thoughts?

Sorry for the rant, I can't help being mad right now....