We have an individual who turned age 70-1/2 in 1994. She is a participant in a money purchase pension plan. On 4-1-1995 she began receiving annuity payments from a 10-year certain annuity based on the entire value of her Plan account as of that date.

However, she continued to work and accrue benefits under the plan. She has not taken any further distributions from the Plan. When calculating her MRDs for 1996 and subsequent years, can we count the monthly annuity payments she is receiving from her 4-1-1995 annuity as MRDs?

cpp- I looked through Sal's book and the Pension Answer Book and can't find anything concrete. I've always believed and practiced that these distributions CAN count toward the minimum required for the year as long as they are not rolled over (I think annuity payments can't be rolled anyway, right?) In any event, as long as the amount to satisfy the minimum required is covered and the tax reporting is done (i.e., participant pays tax on the RMD amount) I think you're ok. Sorry I have no cites! Patti