Questions and Answers
Where does it say, in easily understood terms, that a required minimum distribution (RMD) from a retirement plan is not eligible for rollover to an IRA, even if an individual has not reached his/her required beginning date?
While Treasury Regulation Section 1.401(a)(9)-7 clearly indicates that an RMD is not eligible for rollover, the IRS recently addressed that issue again in its Spring 2008 Retirement News for Employers. The IRS said, "Rollovers to IRAs of required minimum distributions (RMDs) from a retirement plan are not permitted. This is true whether the RMD is made because you turned age 70½ or because you retired after age 70½."
(Posted: 06/11/2008)
