RMD

[Guest Mike Schwing]

Plan has a participant whose last day of service was just before Christmas of 2006. In early 2007 her husband got ill and she stayed home with him to care for him and then he passed. Both she and the employer were under the impression she would return to work - however, after her husband passed she had to have her own surgery and ended up not working any hours in 2007.

The employer believes she has every intent of coming back to work and he would bring her back if she does - but he cannot guarantee she will return.

Is she "retired" for purposes of the definition of the RBD? In reviewing the ERISA outline book it states there is no clear cut definition of being "retired" - other than to assume the employer-employee relationship has ceased. This participant had deferred distribuiton in prior years - but she was always considered and active employee. I just wonder if anyone has an opinion on this issue. Should she have to take the RMD or not?

[PLAN MAN]

How is the employer treating her for other benefits? What is her status for medical coverage? I'd argue the employer-employee relationship ceased to exist sometime in 2007. Believing in her intention does not make a relationship! If she does not come back to work before 12/31/2007, she should take the RMD by 4/1/2008.