RMD Distribution

[JKW]

I have a participant who wants to start taking a monthly distribution from his 401k to cover his RMD for 2013. The participant is not 70.5 until July. Is their any issue with starting the RMD earlier than 70.5 or no because he will be 70.5 during the plan year?

[BG5150]

I see no issue. Birth date won't change.

[GMK]

I agree.

If you're concerned whether the plan allows participants to take a distribution before the actual date they turn 70-1/2, you can check the plan document to confirm that it talks about a Distribution Calendar Year (or some such name). The first Distribution Calendar Year will be the first year for which an RMD is required (the year the participant turns age 70-1/2).

[JKW]

Thanks so much.

[ETA Consulting LLC]

I see no issue. Birth date won't change.

CPC!!!

[BG5150]

I see no issue. Birth date won't change.

CPC!!!

So, do you think that would be an acceptable answer on the essay part?

[ETA Consulting LLC]

I see no issue. Birth date won't change.

CPC!!!

So, do you think that would be an acceptable answer on the essay part?

Absolutely. It's one thing to provide the correct answer, but communicating an understanding is a different level. There is no issue. Why? We have a percentage of the industry would say "because my supervisor or someone else told me". Your answer says they are still age 70 1/2 during the year. You "could" elaborate further and say the criteria is that you are age 70 1/2 during the year and terminated employment. If those two are met, then any amount distributed during that calendar year would satisfy the RMD for that year; regardless of how many checks were paid. It says the same thing; here's my answer and here is why