I would like to roll over my lump sum pension distribution into an IRA, but have an RMD due as I turned 72 in Nov. of last year. Can I roll over a partial distribution that is less the amount of the RMD? Or do I have to cash-out the entire amount because I cannot roll over the RMD portion?
Thank you for any assistance.
If the distribution occurred in 2022 late and it has been less then 60 days since you received the distribution, you are permitted to roll over the amount that is in excess of your RMD for the pension.
If the distribution occurred in January 2023, you are permitted to roll over the amount that is in excess of your combined 2022 and 2023 RMDs for the pension plan.
If this was a buyout of a defined benefit plan, it's not clear how you would determine the amount of the distribution that was RMD.
Hello dmertz,
Thank you for your help! I am in the process of setting up the rollover and RMD distributions now with my former employer before the 4/1 deadline. It was my understanding that I needed to take the 2022 RMD by 4/1 and the 2023 RMD by 12/31. I appreciate your clarification of the timing of these distributions since the IRA is just being created. Otherwise, I would have opened it with excess funds.