RMD and Roth Contributions

[Guest Michele Ciz]

I have a 401(K) plan and the owner will be required to start taking his Required Minimum distributions this year. The plan also has profit sharing and Roth sources of money. When calculating his RMD for 2012, I'll use his balance as of 12/31/11. But, do you consider the Roth contribution source in the 12/31/11 balance, or are they excluded from the calculation?

[mbozek]

I have a 401(K) plan and the owner will be required to start taking his Required Minimum distributions this year. The plan also has profit sharing and Roth sources of money. When calculating his RMD for 2012, I'll use his balance as of 12/31/11. But, do you consider the Roth contribution source in the 12/31/11 balance, or are they excluded from the calculation?

I thought that distibutions from Roth accounts in Q plans must commence at 70 1/2 but participant can rollover Roth distribution to a Roth IRA to avoid MRD after 2012. If there is a balance in Roth at end of 2011 then there must be MRD from Roth in 2012.

[masteff]

http://www.irs.gov/pub/irs-tege/roth_differences.pdf