RMD required from a Pension Lump sum rollover?
If a client rolls over a pension lump sum mid year and has no other qualified accounts is he responsible for an RMD withdrawal in the year of the rollover calculated on that amount? He was taking a monthly pension check up until the rollover.
Permalink Submitted by Alan - IRA critic on Thu, 2013-12-12 19:56
He was getting a monthly pension, but was offered an option to convert the payment stream to a lump sum? If so, the plan should know how much of his RMD must be held out of the rollover and should not include it in the rollover.