Death Disbursement - Pooled Account

[mjf06241972]

Owner of the company passed away.  Was Age 85.  Money was in pooled account and funds are requesting be disbursed to his charitable trust per beneficiary form.

Questions

1. Does the pooled account have to be revalued to date of death?  It is audited plan with 250 employees and multiple brokerage accounts.

2. How is the rmd handled before the disbursement to the charitable trust?

Thank you.

[ESOP Guy]

The plan doesn't HAVE to be revalued but it might be smart to do so.  

Here is one of many discussion on this board about the pro/con of this idea.

The RMD must be paid.  It is always the first dollars out of the account per regulations. 

As an aside this is NOT my area of expertise by a lot but I thought the rules for paying to a charity from a qualified plan are very different than an IRA and most of the benefits given to an IRA don't apply to a qualified plan.  I could be wrong on this so if anyone wants to say I am wrong I fully accept your word on it.  

[Bird]

At this point in the year, and assuming it is a 12/31 plan, I'd strongly suggest moving the approximate amount of money needed into cash before the end of the year, and then simply process the payout after the end of the year.  It's probably going to take that long anyway for forms processing and whatnot.