REQUIRED MINIMUN DISTRIBUTION

Submitted by William Bailey on Mon, 2023-11-20 21:45

This is a little different than an IRA question.
I have a Corporate client who has a profit sharing plan, managed by one firm and the 401-K managed by another firm. Both are in the same corporation, with the same participants, One of the participants who is owner of 10%, still working has a question regarding RMD distributions.

Can his total required minimum distribution from the profit sharing plan and the 401-K Plan be taken out of just the 401K plan?

The Federal ID number is the same for both the profit sharing and the 401K investment programs. There is only one 5500 report filed. Is there any restriction on taking all of the RMD from the 401K portion of the plan.

Thank you for your assistance.

BILL



Submitted by Alan - IRA critic on Tue, 2023-11-21 03:32

This is a non standard situation. Client needs to check with the plan administrator(s), particularly the profit sharing plan since client prefers not to take a separate RMD from that plan.

Submitted by Tony Brown on Sat, 2023-11-25 11:31

My client is 73 years old – we established a SEP/IRA for him in 2022 and he made his first contribution in early 2023. I know he gets a reprieve for last year RMD, however since he didn’t have a 12/31/22 account balance, do we just use the contribution amount in April, ’23 to calculate his RMD?

Submitted by David Mertz on Sat, 2023-11-25 12:49

With a zero balance in the SEP IRA on December 31, 2022, there is no 2023 RMD for this account.

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