First RMD this year
If an individual who has reached RMD age last year decides this year to roll an inactive 401k to his current empoloyer’s 401k where he is a non 5% owner, will he still have to take RMD by April 1 and Dec 31 of this year?
If an individual who has reached RMD age last year decides this year to roll an inactive 401k to his current empoloyer’s 401k where he is a non 5% owner, will he still have to take RMD by April 1 and Dec 31 of this year?
Permalink Submitted by Alan Spross on Thu, 2010-01-07 23:16
In this case, the transferor plan must hold back the RMD for 2010, and either distribute it to the employee or hold it for distribution to the employee prior to 12/31/2010. The RMD cannot be transferred to the new plan. SInce RMDs were waived for 2009, there is no RMD to be held back for 2009.
However, if this same situation existed in another year, the RMDs for both years would have to be held back from the transfer and the first one distributed by 4/1 and the second year by 12/31.