TEFRA Election on RMD

I have a participant in a plan that had a signed TEFRA election to delay RMD processing.  This is the only one I've ever seen.  The participant is now fully retired as of 12/31/2020 so I believe he now has no choice but to take an RMD for 2021.  Per the election signed in 1983 it states

Specifically, I request that funds held for my benefit shall not be subject to distribution prior to my retirement, death or other separation from service with the corporation, or any successor employer

Thus since he is now retired from the employer it appears he has to start taking his RMD - is there anything I could be missing?  

The problem with those elections is that they were supposed to specify how the money was to be taken out, and few of them do.  You're probably ok to just start with regular RMDs as if he were a non-owner (assuming he is an owner otherwise current law would allow him to do exactly that anyway).

For the record those elections were at least a little before my time...but I've had a bit of experience with them.  None are perfect to say the least.

Thanks Bird - they were before my time also - one I first tried to do an RMD for this owner a few years ago he brought this up to me and I had no clue what he was even talking about as I had never heard of such a thing in all my years.  Finally I found someone who knew what it was and I ended up getting a copy of the signed election which only states that he does not have to take it while still active even though he was greater than 5% owner.  Nothing in the election states anything about how it is to be paid out once he is retired - which he is as of the end of 2020.

Thanks for the response. 

Some IRS-preapproved documents include a subsection about what is required for a distribution following a TEFRA § 242(b) election.  If so, the plan’s administrator or other fiduciary would follow those provisions, even if they constrain the distribution more than is otherwise necessary for the plan to tax-qualify.

And you’d want to apply TEFRA’s transition rule:  The method of distribution elected under TEFRA § 242(b) “would not have disqualified [the] trust under paragraph (9) of section 401(a) of [the Internal Revenue] Code as in effect before the amendment made by [TEFRA § 242](a).”  Tax Equity and Fiscal Responsibility Act of 1982, Pub. L. No. 97–248, § 242 (Sept. 3, 1982), 96 Statutes at Large 324, 521 (1982) [cited page attached].

TEFRA section 242.pdf

Peter, in 20 words or less can you explain the pre-TEFRA minimum distribution rules that the 242(b) election must comply with? 😀