RMD from profit sharing plan

Client is a PC, 2 dentists, 15 employees.  Each dentist has his own plan.

Yes "plan" - that is the way the accountant wanted it.

Employees in separate plan, all 3 plans tested together.

One of the dentists traansfered a portion of his account to a limited partnership that his son handles.

Not getting into prohibited transactions or part-in-interest here, but this owner, DOB 7/7/51 will need to take his 1st RMD at the latest by 4/1/25.

We are attempting to get him to rollover his plan's investment in the limited partnership to an IRA which apparently can be done.

Question is, can he get the investment out of the plan and into an IRA without having to take an RMD.  Once he rolls this out of the plan to his own IRA, it's not an plan issue anymore.

2024 is a distribution calendar year. He will have to take his RMD before he can do a rollover.

Sounds like the accountant was thinking ahead on this one! Now when the IRS disqualifies the plan, it will only be the one dentist who gets hit with it.

Or, if the limited-partnership interests are valued as at December 31, 2024, why not direct the plan’s trustee to deliver to the participant, on December 31, 2024 (or, if the participant prefers, in 2025Q1), a number of whole or fractional LP units that meets 2024’s minimum-distribution amount (or the greater portion the participant requests)?

I know he has to take his RMD prior to rollover, I was just thinking if there was anyway around it.We were hoping to get it out of the plan within the next few months.

He's got a small balance in his account with Nationwide, the other alternative to take from Nationwide to cover the entire RMD.

It sounds like you answered your own question.  If there are other assets available (with Nationwide) to cover the RMD, then take the RMD from there.  That leaves the remainder of the year to rollover the LP.

Once the LP is in an IRA, he can use funds in any of the other IRAs (assuming he has some other IRAs) to cover the RMD due based on the collective balances in all of his IRAs (including the one with the LP).  This could be motivation to make the move.