RMD's

[ICT_Bob]

If a participant has reached their Required Begining Date, is still employed and is not a 5% owner are they still able to request that an RMD be processed for them for the tax year?

Extra wrinkle ~ What if the plan does not allow for 59 1/2 Inservice distributions.

Thanks for everyone's insights and knowledge on all of the topics that have been posted. It is a great jumping point for extra learning.

[Belgarath]

Check to see if the plan allows in-service distributions at Normal Retirement Age.

[QDROphile]

The distribution would not be a required distribution, so do not get distracted by aspects of those rules, including amount. Check all distribution provisions. Some plans have some relic distribution provisions relating to age 70 1/2 from when a change was made to the law many years ago.

[ESOP Guy]

I would add if this is a desired plan feature a simple amendment could allow people who are 65 or 70 to take an in-service distribution of say 20% (or x% of people's liking) and the issue is solved. 

 

So instead of tying to squeeze the desired result into the existing plan language simple amend the plan to do what people want.  You can't even reply but if we amend the plan we have to allow everyone to do it.  If you decide the RMD language allows for this that is true for everyone.  

 

If this isn't a desired feature I am not sure why anyone would work this hard to figure that out.