profit sharing distribution

Forum|Forum|4 years ago
April 9, 2022
1 reply
3 views

At the ripe young age of 83, my father-in-law is still working full-time! His employer has a pension plan; however, he has never had to take any of that money until recently when he used the money to buy a car. We received a 1099-R, but the instructions are quite sparse. Is there a required distribution from a profit sharing plan, even if the person is still working? He took out over $29,000 for the purchase, so obviously that's way over and above any RMD, if there is one. How would I answer the question about how the distribution applies to the RMD? Any help would be much appreciated!

ColeenD3

Level 15

It's not an RMD.

Required Minimum Distributions (RMDs) generally are minimum amounts that a retirement plan account owner must withdraw annually starting with the year that he or she reaches 72 (70 ½ if you reach 70 ½ before January 1, 2020), if later, the year in which he or she retires. However, if the retirement plan account is an IRA or the account owner is a 5% owner of the business sponsoring the retirement plan, the RMDs must begin once the account holder is age 72 (70 ½ if you reach 70 ½ before January 1, 2020), regardless of whether he or she is retired. RMD