The owner of a one-participant profit-sharing plan for him alone with $30,000. in assets has named his wife as primary beneficiary contingent on her surviving him by 150 days and their 3 sons as secondary beneficiaries (no contingency). He has acted as the plan administrator in the past but in the plan document had also named one of his sons as an alternate plan administrator.

The 5500-EZ instructions state “The final plan year is the year in which distribution of all plan assets is completed” so it appears that the final plan year is determined by the final distribution date and not by the date of the participant’s death.

Accordingly, if he were to die on 8/15/08 after taking his RMD, then on/about 1/15/09 his wife (if alive) could arrange for the direct rollover of the plan assets to her TIRA. Let’s assume this transfer is completed on 2/5/09. Then the plan administrator would have until 9/30/09 to file the final 5500-EZ.

Q. 1: Is anything I stated incorrect?

Q.2: Must the 2009 RMD be taken before the direct rollover to her TIRA or does she have until 12/31/09 to take the RMD?

Q. 3: Would that RMD be based on her husband’s age?

Thank you very much.