I’ve got a 83yr old client still working that has $700k in a 401k. He is over 5% owner of business so he is required to take RMD’s from 401k. He has not taken an RMD yet from the account for this year. He holds a universal life policy within the 401k that carries a $450k DB and has approximately $79k of cash value that is included as part of the 401k balance on which his RMD is calculated. We are looking to distribute the policy out of the 401k (change owner from 401k to him) which will trigger taxable income of approximately $139k based on a PERC (premiums, earnings, and reasonable charges) value that has been calculated for us from the insurance company. My question…will the distribution of the life policy satisfy his 2013 RMD as he will be triggering income taxes as a result?