RMD

[Nassau]

Client has acquired two physcian groups and former company will be dissolving, prior to that the pension plan will be liquidated. The former company has asked the participants to take action by April 15th or their pension assets will be automatically rolled into a IRA at the current recordkeeper.

One of the new physicans in the plan would like to transfer his assets directly into the plan but is age 74. Will this participant be required to take an RMD before he can roll the assets into the XYZ plan at the recordkeeper?

I would assume since its considered a distributable event and he is over 70.5 he would need to take an RMD if he rolled it over to the plan or IRA? He will continue to be active and working with the main company.

If this is a merger of plans is the RMD still required? If the RMD payment is not required, then why?

Please provide the Code/Regulations where it states if this is a merger of plans and RMD payment is not required.

[Lou S.]

Unless this is a merger of plans, yes he will need to take his RMD prior to rollover.