2009 RMDs

[Guest ENT]

Was an employer required to implement the 2009 RMD relief or was it optional? The sample amendments imply that an employer could have disregarded the relief and administered as usual. I suppose a participant could still take advantage of the relief by making an indirect rollover.

What was the most common way employers handled this?

[BG5150]

If someone chose to take an RMD for 2009, the latest they could have taken it is April 1, 2010 (for those taking their first one). The 60-day window is long over.

[GMK]

Here's a link to Appleby's summary, which I saved for reference:

http://www.retirementdictionary.com/sites/...MD%20100809.pdf

I think the sample amendments from Notice 2009-82 (at the end of the above link) explain the options the plan can offer. In both cases, the participant can choose to receive or not receive a distribution that includes an RMD. The sample amendments define the 2 default options the plan can select for participants who do not choose.

If the plan did something with RMD's in 2009 that wasn't part of the plan doc terms, then you need to amend, by the end of this month I believe.

edit: typo

[Guest ENT]

GMK, thank you for the link. I will be sure to take a look at it. We administered the plan (which reflects the RMD rules) as usual and did not give participants any option to waive RMDs. Accordingly, I don't believe we need an amendment!

[Bird]

We administered the plan (which reflects the RMD rules) as usual and did not give participants any option to waive RMDs. Accordingly, I don't believe we need an amendment!

Depending on your document and/or document provider, you might need an amendment just to keep the status quo. And there are other amendments required for 2011 anyway (Roth in-plan rollovers and HEART).