Increased RMD age not adopted by DB plan

Hello,

As we know, SECURE 1.0 and SECURE 2.0 increased the RMD age. Let's say a DB plan kept their distribution age at 70.5 and continues to pay mandatory distributions at 70.5. Let's assume a participant turned age 70.5 in 2023 and the DB plan will pay the first "RMD" by April 1, 2024. Can a participant roll that payment to an IRA and avoid taxation since the plan is forcing the distribution sooner than they otherwise are required to? Does by virtue of the plan keeping the RMD age at 70.5 make this an RMD? Or does the participant have any individual choice to roll it since it is paid before 73?

Thank you for your thoughts.

It's my understanding that a RMD made at 70-1/2 (because that's what the plan says) when the participant's IRC 401(a)(9) due date is 72 or 73 will be eligible for rollover, assuming it's otherwise rollable (eg, not an annuity).  As I recall, there are one or two discussion threads on this topic (dated in 2023?).  You can look for them using the search feature, or maybe someone else has a link.  In any case, a plan's administrator and/or plan sponsor will want to get confirmation from legal counsel. 

On 2/29/2024 at 7:30 PM, david rigby said:

assuming it's otherwise rollable (eg, not an annuity)

I agree with David and also that this is the key. If the person can elect a lump sum or installments less than 10 years then those could be rollover eligible.