AVC (Additional Voluntary Contribution Pension) and RMD’s?
Can anyone tell me . . .
Does the taxable portion of an AVC pension, taken as a lump sum, qualify as an RMD toward the total RMD requirement of other IRA’s, 401k’s, etc?
In other words, . . . In the process of rolling over an elected lump sum pension option to an IRA, a portion of that lump sum distribution, rather than being rolled over to the IRA, was taxed and distributed to the retiree/former employee.
Is this taxable portion of the AVC (which most likely shows up on a 1099R at the end of the year), an acceptable distribution to meet overall RMD requirements? . . . toward the satisfaction of all other IRA, 410k ,RMD’s, etc.??
Thank You!
Permalink Submitted by Alan - IRA critic on Mon, 2021-11-01 20:56
I think you are referring to an actual cash value plan derived from a DB pension. The RMD method that the plan applies is not eligible for rollover, but as the following link explains that RMD can be calculated like a DC plan or it could be derived from annuity payments. Whatever this RMD is will be distributed and reported on a separate 1099R from the direct rollover of the balance to an IRA. The amount distributed cannot be aggregated with other plans, it stand alone in the same manner that a 401k RMD would.
How Do the RMD Rules Work When a Pension Plan Lump Sum is Paid? | Ed Slott and Company, LLC (irahelp.com)