rmd 1st RMD and plan term same year

[JulesInCNY]

I'm sure this has been asked.  I have an owner who is terminating his small 4-employee Profit Sharing plan, and turns 73 in 2026.  typically we would make sure that a participant takes their (generally already existing annual) RMD prior to rolling the remaining funds, however he technically has until 4/1/27 for the 1st RMD.  Is it ok to let him defer and allow all monies to transfer to an IRA now?  this is assuming he may want to defer, and I'd like to have an answer ready, partly for myself and any future scenarios.  He may not care and want it this year.  He has a significant balance so may not want two taxable required distributions in 2027.

thanks in advance for any insight!

[Bill Presson]

Has to take it this year when the plan terminates. 

[JustSayin]

4/1/27 is the latest date to take his 2026 RMD.  He still needs to take a 2026 RMD.