Al,
Attached is the Regs. section that deals with this. In a nutshell, the rollover cannot be done without the distribution of both RMDs, and if by some chance it gets done with the RMDs transferred, the RMDs are still deemed to be taken, but the rollover of the RMDs (which are not an eligible rollover distribution) then needs to be corrected under the excess contribution IRA rules.

Therefore, if you delay the RMD, you must also delay the rollover.

Originally, I thought you were going to ask what the separation date was, 12/31 or 1/1. 12/31 is the only date where this matters. I do not know of any specific rule that defines separation as being the last day of work vrs. first day off the payroll, so I always cringe when the 12/31 separation date surfaces. Employers would rather have the 12/31 date, whereas the employee may want the extra day to delay the RMDs another year. My guess is that 12/31 applies unless the plan doc says otherwise.
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Reg:
Q–7: When is a distribution from a plan a required minimum distribution under section 401(a)(9)?

A–7: (a) General rule. Except as provided in paragraphs (b) and (c) of this Q&A, if a minimum distribution is required for a calendar year, the amounts distributed during that calendar year are treated as required minimum distributions under section 401(a)(9), to the extent that the total required minimum distribution under section 401(a)(9) for the calendar year has not been satisfied. Accordingly, these amounts are not eligible rollover distributions. For example, if an employee is required under section 401(a)(9) to receive a required minimum distribution for a calendar year of $5,000 and the employee receives a total of $7,200 in that year, the first $5,000 distributed will be treated as the required minimum distribution and will not be an eligible rollover distribution and the remaining $2,200 will be an eligible rollover distribution if it otherwise qualifies. If the total section 401(a)(9) required minimum distribution for a calendar year is not distributed in that calendar year (e.g., when the distribution for the calendar year in which the employee reaches age 70 1/2 is made on the following April 1), the amount that was required but not distributed is added to the amount required to be distributed for the next calendar year in determining the portion of any distribution in the next calendar year that is a required minimum distribution.

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