RMD Calculation

[R.G.]

A non-5% owner who is retiring in March 2014 and turn 70 1/2 in June of 2014 would have a required beginning date of April 1, 2015. It's my understanding that the RMD amount would be calculated based on his balance at December 31, 2013. We informed the participant that he could take the first RMD in 2014 or wait and take one by April 2015 and take a 2nd by December 2015. The participant is requesting that, upon retirement, his entire account balance be rolled over to an IRA in 2014 and then he will take the RMD from the IRA by April 2015. I don't think this would be allowed, correct?

My hesitation though is that as of the date of retirement he has not turned 70 1/2; would it be possible for him to rollover the value before he turns 70 1/2?

[QDROphile]

If the employe retires in March, the first required distribution year is 2014. The first dollars distributed in 2014 after retirement are required distribution dollars and not eligible for rollover.

[masteff]

You code citation is Reg 1.402(c )-2 Q&A-7. Note that it stipulates the calendar year so it's not relevant that it's prior to the actual day on which he turns 70 1/2.