Post-Termination RMD Obligations

[Guest ebenny]

If an ESOP has been terminated, but distributions are not being made until receipt of a favorable determination letter from the IRS, must the plan continue to comply with the IRC 401(a)(9) rules for making Required Minimum Distributions in the meantime?

[rcline46]

Asolutely.

[Guest ebenny]

Thanks, RCline. That is the answer that made the most sense to me, I'm just having trouble finding a definitive citation or guidance to back it up.

[ESOP Guy]

The reason you can't find a citation is because I doubt it exists. It is simply you must always run a plan in accordance with the law and plan provisions even if you have executed an amendment to terminate the plan. The RMD provisions are still in the plan and still in the law.