Required Minimum Distribution-2010

[jala]

In a defined contribution plan, the participant's balance consists of deductible contributions (taxable) and voluntary contributions (after-tax).

He is an owner and must begin taking his required minimum distributions in 2010.

Is there a certain order to follow in distributing his RMD, Voluntary Balance vs Deductible Balance?

Can he withdraw/deplete his voluntary contribution balance first and be taxed on the applicable earnings only? We have the basis in order to calculate.

Can he withdraw some from his deductible contribution balance and some from his voluntary contribution balance?

I appreciate any guidance.

Thank You,

[Lou S.]

I believe you need to pro-rate beween taxabale and non-taxable recovery but I don't have an exact cite for you off hand.

[Bird]

If the voluntary contributions are from pre-1986 (I think that's the date) then you can pull them out first, not pro-rata. There's a cite for it...but I don't have it.

[GMK]

It's pre-1987.

And here's another thread on this:

http://benefitslink.com/boards/index.php?s...c=28910&hl=

[rcline46]

There is a bill in congress to suspend RMDs for 2010, so don't rush!

[jala]

thanks to all of you for responding. This helps a great deal.