2009 RMD rollover back to same qualified plan
Client received 2009 RMD’s from defined contribution plan and from a 403B. Amounts were returned into each respective plan within 60 days. Both plans are held at TIAA-CREF in the name of the individual taxpayer. TIAA-CREF shows the returned dollars as direct rollovers. Is this permissible? I know taxpayer could have rolled over to and IRA, but back into each qualified plan?
Thanks.
Permalink Submitted by Alan Spross on Fri, 2009-07-31 19:19
This is OK. Following is copied from the technical explanation of WRERA signed last December:
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If all or a portion of a distribution during 2009 is an eligible rollover distribution because
it is no longer a required minimum distribution under this provision, the distribution shall not be
treated as an eligible rollover distribution for purposes of the direct rollover requirement and
notice and written explanation of the direct rollover requirement, as well as the mandatory 20-
percent income tax withholding for eligible rollover distributions, to the extent the distribution
would have been a required minimum distribution for 2009 absent this provision. Thus, for
example, if an employer-provided qualified retirement plan distributes an amount to an
individual during 2009 that is an eligible rollover distribution but would have been a required
minimum distribution for 2009, the plan is permitted but not required to offer the employee a
direct rollover of that amount and provide the employee with a written explanation of the
requirement. If the employee receives the distribution, the distribution is not subject to
mandatory 20-percent income tax withholding, and the employee can roll over the distribution by
contributing it to an eligible retirement plan within 60 days of the distribution
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Permalink Submitted by Michael V. Costello on Thu, 2009-08-06 20:54
Thanks for the help!