Required Minimum Distributions (RMDs)

Required Minimum Distributions (RMDs)

An additional option to consider, if the 401(k) accountholder invested in the Corporation is of an age to take Required Minimum Distributions (RMDs), RMD’s can be taken in the form of the Employer Securities (QES)/corporate stock or if the stock is liquidated and proceeds + earnings returned to the 401(k) Plan, taken in the form of cash.

RMDs are minimum amounts that a retirement plan account owner must withdraw annually starting with the year that he or she reaches 70 ½ years of age or, 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 70 ½, regardless of whether he or she is retired.

For RMD’s made from the QES/corporate stock, in kind, the retirement plan legal documents (e.g. Adoption Agreement) must allow for the “in kind” distribution or transfer of the Employer Securities. If your retirement plan documents do not currently allow for this, we can generally amend your documents to allow for this in kind method.