k man Posted September 26, 2013 Posted September 26, 2013 a participant terminates with a loan and is over 70 1/2. the loan gets defaulted and the participant receives a taxable distribution. can he use that distribution to make up some or all of his RMD for that year?
Lou S. Posted September 26, 2013 Posted September 26, 2013 I haven't review it in a while but I think if it is a loan default it cannot be used to satisfy RMD; but if it is a loan offset it can be used to satisfy RMD.
k man Posted September 26, 2013 Author Posted September 26, 2013 i believe a loan offset occurs when they take a distribution of their entire account balance, correct?
BG5150 Posted September 26, 2013 Posted September 26, 2013 A loan offest occurs when the participant has a defaulted loan and arrives at a distributable event under the plan. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
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