The Internal Revenue Service (“IRS”) previously issued guidance concerning “missing participants” in qualified retirement plans attempting to process a required minimum distribution (“RMD”). In short, the IRS directed its examiners to cease challenging the qualified status of plans that failed to distribute an RMD, if the plan sponsor made a good faith effort to locate the missing participant.

The guidelines for qualified plans were recently extended by the IRS to cover 403(b) plans. If you have any questions regarding of the handling of RMDs for missing participants under this guidance, please contact your Nyhart consultant.