Do 1099R Dividends Count Toward RMD from Profit Sharing Plan
I inherited a Profit Sharing Plan from my husband. He would have turned 70.5 last year. I receive dividends from this plan that are report on a 1099R with a distribution code of U. Do they count towards the Required Minimum Distribution? An agent for the employer says that the dividends don’t count towards the RMD. Is this right?
Permalink Submitted by Alan - IRA critic on Fri, 2018-03-23 19:08
The agent is correct per IRS Reg. 1.401(a)(9)-5, Q 9. These are dividends distributed from an ESOP plan.