Deminimus for RMD's ?

[Jim Chad]

I think I know the answer but I'm hoping.

Does everyone distribute a $15 RMD?

[Guest KennyH]

I'm not aware of an exception for small benefits, but am trying to think of a situation where this might occur. Is this for an owner who is still working? Does the plan automatically distribute the total benefit when it is less than $1,000?

[ESOP Guy]

I have told clients that the rules say any RMD regardless of size needs to be sent. I had one that sent the $1.50 RMD and I have one that refused to send the $0.75 RMD.

I have always thought the solution is to amend the plan to allow the person to take their whole balance in those situations.

[masteff]

Here's a prior discussion: http://benefitslink.com/boards/index.php?showtopic=33984

[BG5150]

What's the account balance? Like $400? Why doesn't he or she just take the whole thing? Or roll it into an IRA and it will be combined with the rest of the IRA money, if any, for RMD purposes.

[ETA Consulting LLC]

I'm not aware of an exception for small benefits, but am trying to think of a situation where this might occur. Is this for an owner who is still working? Does the plan automatically distribute the total benefit when it is less than $1,000?

"Like". I also "like" BG5150's comment. In many instances, a question often results from a larger unresolved issue. I'm not saying the plan has a $1,000 forceout provision, but merely commending the thought of posing the relevant question