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!
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