Aggregating RMD's between different plan types

[Guest Steve Nolan]

I have a participnat in a 401(k) plan who wants to aggregate his RMD's between his IRA's and his qualified plans. From my past experience with IRA's, I know that it is fine to aggregate RMDs between 408 plans.

Section 401A(9)does not make any mention of whether aggregation is allowed or disallowed. Common sense would say that it would not be allowed since a 401(k) does not fall under the same rules as section 408. However, the participant is demanding positive proof that he can not aggregate. Is there anything in the code that specifically says that aggregating RMDs between an IRA and a qualified plan is prohibited? Thanks for any help anyone can offer.

[QDROphile]

Your plan document should be pretty clear that the minimum distribution requirments apply to the plan benefits, without implication that the plan can look outside for something to aggregate. The plan document runs the plan. End of issue as far as a participant is concerned.

[Guest LOhmer]

1.401(a)(9)-1 states the following:

"H-1. Q. What distribution rules apply if an employee is a participant in more than one plan?

If an employee is a participant in more than one plan, the plans in which the employee participates may not be aggregated for purposes of testing whether or not the distribution requirements of section 401(a)(9) are met. The distribution of the benefit of the employee under each plan must separately meet the requirements of section 401(a)(9)."

It was Notice 88-38 that permited the following altenative method for IRAs only:

"Under the alternative method provided in this notice, individuals must still calculate the required minimum distribution separately for each IRA. However, such amounts may then be totalled and the total distribution taken from any one or more of the individual IRAs...."

Hopefully this will help.

[This message has been edited by LOhmer (edited 12-28-98).]