I have a client that is retiring at the age of 74. She has a cash balance plan that is saying that they need to calculate the RMD prior to distribution and then the RMD can not be rolled to her IRA. This part I get. My question is, does the Worker, Retiree and Employer Recovery Act of 2008 that was signed into law in late December relieve the employer from this calculation? All RMD's from defined contribution plans are not required but I can not find anywhere if this pertained to cash balance plan rollovers.
Please direct me to where I can find the answer.
Randy Green
Full Version: Cash Balance Distibution post age 70 1/2
From WRERA:
SEC. 201. TEMPORARY WAIVER OF REQUIRED MINIMUM DISTRIBUTION
RULES FOR CERTAIN RETIREMENT PLANS AND ACCOUNTS.
(a) IN GENERAL.Section 401(a)(9) of the Internal Revenue
Code of 1986 (relating to required distributions) is amended by
adding at the end the following new subparagraph:
(H) TEMPORARY WAIVER OF MINIMUM REQUIRED DISTRIBUTION.
(i) IN GENERAL.The requirements of this paragraph
shall not apply for calendar year 2009 to
(I) a defined contribution plan which is
described in this subsection or in section 403(a)
or 403(b),
(II) a defined contribution plan which is an
eligible deferred compensation plan described in
section 457(b) but only if such plan is maintained
by an employer described in section 457(e)(1)(A),
or
(III) an individual retirement plan.
Unfortunately, this does not grant a pass to defined benefit plans.
SEC. 201. TEMPORARY WAIVER OF REQUIRED MINIMUM DISTRIBUTION
RULES FOR CERTAIN RETIREMENT PLANS AND ACCOUNTS.
(a) IN GENERAL.Section 401(a)(9) of the Internal Revenue
Code of 1986 (relating to required distributions) is amended by
adding at the end the following new subparagraph:
(H) TEMPORARY WAIVER OF MINIMUM REQUIRED DISTRIBUTION.
(i) IN GENERAL.The requirements of this paragraph
shall not apply for calendar year 2009 to
(I) a defined contribution plan which is
described in this subsection or in section 403(a)
or 403(b),
(II) a defined contribution plan which is an
eligible deferred compensation plan described in
section 457(b) but only if such plan is maintained
by an employer described in section 457(e)(1)(A),
or
(III) an individual retirement plan.
Unfortunately, this does not grant a pass to defined benefit plans.
QUOTE (helpUretire @ Jul 24 2009, 03:12 PM) 
I have a client that is retiring at the age of 74. She has a cash balance plan that is saying that they need to calculate the RMD prior to distribution and then the RMD can not be rolled to her IRA. This part I get. My question is, does the Worker, Retiree and Employer Recovery Act of 2008 that was signed into law in late December relieve the employer from this calculation? All RMD's from defined contribution plans are not required but I can not find anywhere if this pertained to cash balance plan rollovers.
Please direct me to where I can find the answer.
Randy Green
Please direct me to where I can find the answer.
Randy Green
You need to remember that a cash balance PENSION plan is a defined benefit plan with a special formula.
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