Participant terminates 12/31/03 and turns 70 1/2 in September 2004. First distribution must be by 04/01/05.

Can she rollover the full amount if she says that she wants to defer first distrib until 2005.

My reaction is no, the plan must make the distribution. Any contrary advice?

Thank you.

Your reaction is right.
Beginning the year the individual reaches age 70 ½*, the first amount distributed is attributed to the RMD and is therefore not rollover eligible, except for amount in excess of the RMD amount.

For instance, if the RMD amount is $10,000, the first distribution/s in 2004 up to $10,000 is not rollover eligible. Any distribution in excess of $10,000 is rollover eligible (assuming the other rollover eligibility requirements are met)

*Except in cased where the RMD is delayed beyond age 70 ½ to retirement

Thanks -

So it is she can't elect to delay the distribution to 2005 and then take a distribution (which she rolls).

A distribution is a distribution and the first amount distributed applies to the minimum.

Thanks again.