RMD for seasonal employee?

Guy works April to November every year.  Turned 73 this year.  Since he is not employed on 12/31 does he have to take an RMD?  Do service spanning rules apply here?

I understand that you are saying that Mr. Guy is not terminated but just not working, correct?  If so, I would say that he is an active employee, so no RMD.

Keep him high on the list of "always checking for".  You never know what they will code for a term date if he doesn't come back to work in April of 2025.

Just my two cents....

That's a tough one since you could miss the April 1 RMD deadline if he doesn't back.

For a participant who has reached the participant’s applicable age, the Treasury’s rule sets the § 401(a)(9)(C) required beginning date as the April 1 that follows “[t]he calendar YEAR in which the employee retires from employment with the employer maintaining the plan.” 26 C.F.R. § 1.401(a)(9)-2(b)(1)(ii) (emphasis added) https://www.ecfr.gov/current/title-26/part-1/section-1.401(a)(9)-2#p-1.401(a)(9)-2(b)(1)(ii).

If, by December 31, neither the employer nor the employee communicated to the other an end of the employment, it might be a good-faith interpretation to presume the employee had not THEN retired from employment. If so, the following April 1 would not be the required beginning date, even if before April 1 (but after the preceding December 31), the employer or the employee decided to end the employment.

A rule interpreting a severance from employment, although for a different tax law condition, suggests that a mere expiration of a nonemployee’s work period might not be a severance “if the eligible employer anticipates a renewal[.]” And that’s so even if whether the worker is reengaged depends on whether the employer needs the worker’s services, whether the employer has money to pay for the services, or both. See 26 C.F.R. § 1.457-6(b)(2)(i) https://www.ecfr.gov/current/title-26/part-1/section-1.457-6#p-1.457-6(b)(2)(i).

This is not advice to anyone.
 

Whether the employment relationship has terminated or not is based on all the relevant facts and circumstances. 

You don't say what type of plan. If DC, is he working enough hours and considered employed 12/31 (if necessary) to get an allocation? Are there other benefits that he could get if retired or is precluded from unless retired and, if so, how are they treated? 

CuseFan gives us a helpful reminder to consider logical consistency under the retirement plan to be administered, and maybe logical consistency regarding other employee benefits.

Thanks all.  I was leaning toward the fact that the employment is implied until outright, um, terminated.

So we are going to forgo the RMD this year.  We will check in with them in January to see if the relationship ended in late 2024.  If it did, we will get the RMD done before 4/1.