RMD

[JKW]

We have a participant over age 70.5, non-owner, who worked part of the 2010 year, can she still opt out of taking her RMD for 2010 or does she have to be active at the end of the year?

[Tom Poje]

good question. in your case for non owner

1.401(a)(9)-2 Q-2

(a) Required Beginning date means April 1 of the calendar year following the later of the calendar year in which the ee attains age 70 1/2 ot the calendar year in which the employee retires from the plan.

so it doesn't matter if you worked at all during the year, its based on the year you quit.

(Of course, that means in most cases you don't receive the census info from the client until the following year, which means its well after the fact.)

if you use Relius, I did try to create a report (and posted under the Relius board on Benefits Link) that would pull anyone this would pertain to (the report will say "by 4/1/2011 if you terminate before 12/31/2010" for such people it finds)

it can be run across all plans at once, hopefully it catches everyone, but since I wrote it I offer no guarantees.

[JKW]

Thanks.