RMD on QRP Termination rollover
A qualified plan terminates and a participant who is over 70.5 receives a rollover distribution into his IRA. He continues to work for the same employer as sponsored the plan. When must his RMD start with regards to the rollover value? For which year must he take a RMD?
Permalink Submitted by mk foss on Fri, 2012-11-09 23:19
The RMD is based on the 12/31 balance in the IRA. If there was no balance at 12/31/12, the first RMD is due in 2013. If the individual had terminated and the plan had not, a 2012 RMD would have been due. If the rollover was rolled to an exisiting IRA, the 2012 RMD is still based on the 12/31/11 balance even though the account is now much larger.