401k to IRA
I want to move my 401k to my IRA as a DIRECT ROLLOVER
( ttee to ttee
The 401k refuses to do so because they claim
I turned 70.5 on 4/10/2016 and
MUST take my 2016 RMD before they will move my other assets.
Would think that the would the 4/1/2017 RBD over-ride this 2016 RMD
OR are is the 401k on firm ground…..
Permalink Submitted by David Mertz on Fri, 2016-05-27 16:42
The plan administrator is correct. CFR 1.402(c)-2 states, “if a minimum distribution is required for a calendar year, the amounts distributed during that calendar year are treated as required minimum distributions under section 401(a)(9), to the extent that the total required minimum distribution under section 401(a)(9) for the calendar year has not been satisfied. Accordingly, these amounts are not eligible rollover distributions.” A direct rollover from a 401(k) to an IRA involves a distribution from the 401(k). Since the first money distributed from your 401(k) in 2016 is deemed be your 2016 RMD (despite your RBD being April 1, 2017), the RMD must be satisfied before you can roll the remainder of the 401(k) over to the IRA.