RMDs When Account Is Locked

[ERISA-Bubs]

We were informed that a QDRO would be forthcoming on a Participant's account, so we put a lock on the account. Now the Participant is due to receive a required minimum distribution. Should we make the RMD even though the account is currently locked?

[Lou S.]

As far as I know the RMD is still required and does not require any spousal consent.

You can let both parties know it was made and they can negotiate it into the settlement as to what both parties ultimately get.

[QDROphile]

You need a better understanding of what a "lock" because of a domestic relations order entails. There really is no such thing, although most of the time the concept/practice does not cause any harm. You may also need to see how section 401(a) (9) works with respect to a benefit that is subject to a QDRO.

[Belgarath]

To be more specific - a plan is not treated as failing the 401(a)(9) requirements solely because it fails to make an RMD during the period when the QDRO determination is being made, so long as the period does not extend beyond the IRC 414(p)(7) period. 1.401(a)(9)-8, Q&A-7.