My understanding is that the new law allows account balance participants to avoid an RMD for 2009.
However, my understanding is that DB plan participants must receive an RMD in 2009?
Furthermore, if a DB participant receives a lump sum distribution in 2009 and is over 70 1/2, a portion of such distribution must be received as an RMD and the remainder may be able to be rolled over. Agreed?
Thanks.
Full Version: 2009 RMDs
That all sounds correct to me, you have to pay the RMD first before rolling over the remaining funds.
QUOTE (JAY21 @ Feb 12 2009, 03:02 PM) 
That all sounds correct to me, you have to pay the RMD first before rolling over the remaining funds.
Suppose that you have been calculating the last few RMD's the 'new way' (i.e. not using the account balance method) and the LS is paid in 2009, can you now use the account balance method on this Lump Sum?
If the participant (sole owner plan) has elected to forego some benefit so that the LS = Assets, would the account balance method be based on his calculated LS or the actual LS that is being paid?
Actual. Good news.
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