Hired/Retired after 70.5- NO 12/31 balance
Employee was hired at interim position at age 71 and left during same calender year so there is no 12/31 balance. What balance do we use for RMD?
Thanks
Nick
Employee was hired at interim position at age 71 and left during same calender year so there is no 12/31 balance. What balance do we use for RMD?
Thanks
Nick
Permalink Submitted by Alan Spross on Mon, 2012-11-05 19:33
Hi Nick,
With no prior YE plan balance, there is no RMD due for the separation year. The plan balance could be fully rolled into an IRA before year end.
With or without the IRA rollover, there will be an RMD for the following year from the plan that holds the 12/31/2012 balance.