RMDs
We have a participant that passed away in 2011. An RMD was taken in 2011 and the assets transferred out of his 401(k) to his wife’ IRA. So at the end of the year his account balance was $0. We found out that he’s entitled to 2011 Profit Sharing contributions which will be deposited into his account over the next several months. The last contribution will occur in September 2012. The funds will roll to his wife before the end of the year, again leaving him with a balance of $0. Is he required to take any RMDs in 2012 or 2013?
Thanks!
Permalink Submitted by mk foss on Wed, 2012-03-14 16:26
When RMDs are necessary for a deceased participant, they must be withdrawn by the beneficiary. There was no balance at 12/31/11 so the spouse beneficiary does not have to take an RMD other than from her own IRA. The 2012 contribution will be rolled to the spouse’s IRA before 12/31/2012 – so any 2013 RMD will be based on her 12/31/2012 balance which incloudes the 202 401k contribution. If the 2012 401k contribution was not rolled over by 12/31/2012, the spouse would need to take an RMD based on it for 2013.