A retired participant (non-owner) turns 70 1/2 in October '08, therefore her first RMD is not due until 4/1/09.
She is interested in rolling her vested balance out of the Plan now.

For plan purposes, does she have to take her 2008 RMD first, then rollover the remainder? Or can she just rollover the entire amount without taking an RMD because she is not required to take an RMD during '08?

Thanks!

The first distributions in a year in which a plan participant is 70 1/2 or older are considered RMDs. They are not rollable.

RMDs must be taken and the remainder may be rolled out. Before rolling all funds consider advantages of retaining any company stock (if there is any in the plan) outside of the IRA.

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