Schedule R, Line 3

[mming]

A participant who has been taking required minimum distributions dies, her beneficiary takes one RMD on the deceased participant's benefit the following year and is then paid the remainder of the benefit the year after that - would that last payment be considered a lump sum distribution for purposes of line 3?

[My 2 cents]

I would not think that a final payment with respect to a participant who had been receiving a series of payments would be considered a lump sum distribution for purposes of Schedule R.

Example: Participant retired under a 15 year certain and life option and dies after 7 years. The beneficiary elects to be paid the commuted value of the remaining certain payments. I would not be likely to count that as a lump sum for Schedule R purposes.

[chc93]

Well... the instructions to Line 3 specify "single-sum distribution". So I would think that for a participant who has been receiving a "periodic" distributions, when a final distribution of the remaining payments is paid in a single payment, that would be a "single-sum distribution" and would be reported on Line 3.