Jump to content

RMD for Annuity + Partial Lump Sum


Recommended Posts

DB plan allows for bifurcated distributions, i.e., a partial lump sum with the remainder as an annuity.

How do you calculate the RMD for such a distribution? Participant has reached required beginning date and wants to roll over as much of the lump sum as possible--but any portion that is attributable to the RMD isn't eligible for rollover.

The RMD regs tell you how to calculate the RMD for an annuity or a total lump sum, but not a bifurcated distribution.

Cheers.

Link to comment
Share on other sites

You can't use the account balance method on the annuity but you can use the annuity method on the lump sum. So you have that option of treating it all as an annuity (12 monthly payments) or I don't see why you could not treat it as two separate distributions and split the methods.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...