According to the ERISA Outline Book, "once the participant reaches normal retirement age (or age 62, if later), the plan is permitted to require that distribution be taken. In that case, only the form of payment might be left to the participant's election. The plan may permit the participant to postpone distribution beyond normal retirement age, subject to the minimum distribution requirements."

Participant has passed the NRA and is terminated. He is now requesting his RMD. The only form of payment allowed in the plan is lump-sum distribution, defined as one lump-sum payment in cash or property. May the plan require that the participant take a total distribution since he has requested a RMD?

Thank you.

What does your plan say? Most trust docs allow the RMD to be distributed as an "installment" even if the plan allows only lump sums.

Your doc may not allow the force out of the participant at age 62 unless his balance is under the cashout threshold. If he's over the cashout limit, you might be able to use the situation as a talking point to perhaps persuade him to take his entire balance (of course the RMD portion must be cash, the rest can be a rollover to an IRA where he can continue his RMD's).