mgcpension Posted April 14, 2018 Posted April 14, 2018 Should an RMD be paid to an Alternate Payee before distributing AP's segregated account from 401k plan? Alternate Payee will turn 70 1/2 in 2018 so an RMD would be necessary and would be based on AP's balance as of 12/31/2017. The court order was signed in Sept 2017 but it not provided to the Plan Administrator until mid January 2018. The participant's account was segregated in Feb. 2018. The AP did not have a segregated account balance in the 401k as of 12/31/2017, so is a 2018 RMD necessary or not? If a 2018 RMD is necessary, should the participant's account as of 12/31/2017 be prorated between participant and AP to calculate the 2018 RMD for the AP? or simply use the value of the AP's account when segregated in Feb. 2018? The participant will also turn 70 1/2 in 2018, however is still employed and a non-owner.
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