RMD not allowed?
Can a qualified plan not allow someone to take RMD’s while they are still employed? I’m still employed, 70.5 in 2017. The plan administrator says I can only receive RMD’s if I retire and the earliest would be 4/1 of the year following retirement.
Permalink Submitted by Alan - IRA critic on Fri, 2017-10-06 03:53
A plan will generally have a normal retirement age after which in service distributions can be made whether they are RMDs or not. For many plans that age is well before RMD age. However, a plan can legally delay distributions up to the last day for which an RMD must be distributed which would be on the required beginning date of 4/1 after the year in which retirement occurs . A plan cannot delay distributions beyond a reasonable time once the employee separates from service.