Minimum Required Distribution

[Scott50]

I have a plan participant that wants to roll his IRA into the 401(k)(allowed by the plan).  He is over 70 and has taken his MRD for a few years.  Can he stop taking his MRD now that the funds are in his 401(k) plan?  He is still working for the plan sponsor and making referrals.

[Lou S.]

He would need to take his MRD from the IRA for 2019 before rolling the balance in to the Plan.

Once rolled into the Plan he would fall under the 401(a)(9) rules for the plan so if he is not a 5% owner and continues to be employed he would not need to take an MRD from the Plan until he separates service. When he separates he would have a MRD for the year he separates due no later than April 1 of the year following separation.

[Bri]

Lou -

Since he could take his IRA minimum from any of his IRAs, does it still matter if this specific IRA issues one prior to the rollover in?

[Lou S.]

He needs to satisfy the RMD from his IRA(s) for 2019. I was using the simple case of having just 1 IRA where he would need to take the RMD before rolling into the Plan.