katieinny
Feb 26 2007, 03:36 PM
A 401(k) plan is being merged into another 401(k) plan due to a merger and acquisition. A 75 yr old NHCE participant is being told by the TPA that his RMD cannot be transferred. Our position is that he doesn't have an RMD because he hasn't retired. The entire account balance should transfer. His RMDs won't start until he retires from the new company, assuming their plan also allows him to hold off until he retires. Am I missing something?
b2kates
Feb 26 2007, 03:55 PM
are the plans being merged or is the "old"plan making a distribution that is expected to be rolled?
RCK
Feb 26 2007, 05:29 PM
Is the acquisition a stock deal in which case his employment does not terminate or an asset deal in which he terminates from original employer and is hired by the successor firm?
Bird
Feb 27 2007, 08:42 AM
QUOTE
A 75 yr old NHCE participant is being told by the TPA that his RMD cannot be transferred. Our position is that he doesn't have an RMD because he hasn't retired.
It sounds to me that there is no RMD. I agree with your firm.
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