Recent Retiree
Client, age 71, retired (job eliminated) from Co. A on 2-6-2009. Has a frozen DB (Cash Balance) plan and a 401(k) plan, both at Co. A Does not want any distribution until 2010 or later. Wants to be certain, at least for 2009, no RMDs are needed. Correct?
Permalink Submitted by Alan Spross on Fri, 2009-02-13 20:41
Al,
I would say correct, except for one unlikely, but possible scenario.
If client turned 70.5 in 2008 AND in one of the few cases where the plan requires RMDs at 70.5 despite the statutory beginning date of 4/1 following the year or separation, there would be a 2008 plan RMD due by 4/1/2009, the plan RBD. It would be for 2008 and would therefore not be waived by WRERA. Since this is only a plan RMD and not a statutory, it could be rolled over to an IRA.
In all other cases, no RMD required for 2009, and first RMD would be due 12/31/2010 for 2010.
Permalink Submitted by Al Fry on Sat, 2009-02-14 04:57
Thanks, Alan. According a coulple of their admin people, the plans did not require RMDs at 70.5 if still working.