HCE Owner received RMDS while working, then retired and received a Lump Sum

[CharlesLeggette]

Takeover plan. He actually worked 2012-2015 and didn’t formerly retire until 2015. There are a couple of other parts who are by aggregation, owners. The Plan is Non-PBGC and is about 125% AEQ overfunded. Its about 140% AFTAP/HATFA overfunded.

 

The 2012-2014 distributions were RMDs.

 

It seems legitimate that at his age in 2015 he would be given retirement paperwork[which included a lump sum option], execute same and go home.

 

But something nags me about this….any thoughts???

[Calavera]

As long as he did not roll over the whole amount of his lump sum to an IRA, he should be fine. The portion of the lump sum would represent the 2015 RMD and is not allowed to be rolled over.