BG5150 Posted December 5, 2008 Posted December 5, 2008 I was just wondering what might happen in this scenario: Person is 75 and is retired. Not finding retirement life satisfactory, she decides to get a part-time job. As fate would have it, her new employer is very generous in its eligibility for the retirement plan: immediate eligibility, monthly entry. So our restless retiree starts working on Feb 15 and enters the plan on March 1. Being fiscally responsible, she decides to take advantage of the plan's salary deferral feature. She contributes $200 a month to the 401(k) plan. In October, her husband wins the lottery, and they move to the Bahamas so he can fulfill his lifelong dream of being a scuba instructor. She quits her job and sets up a shop selling overpriced beer to tourists next to her husband's scuba shop. My question is: does she have a RMD for that year? I would think not, but you never know. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
jpod Posted December 5, 2008 Posted December 5, 2008 I am not quite sure what you're getting at, but can you have an MRD for a year when you're account balance at the beginning of the year is $0?
BG5150 Posted December 8, 2008 Author Posted December 8, 2008 That's what I figured. I just wasn't 100% that I didn't overlook something. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
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