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Mandatory deferral of RMD 2020?

PATAX
Level 11

Is it possible for there to be a mandatory deferral of 2020 RMD for a company pension / retirement plan? Everything that I have read states that the deferral of the 2020 RMD is an election that the recipient can make. But I'm not a retirement/pension expert and maybe I'm missing something. Retirement distribution is a small annual amount from a Trust Company for a hospital to elderly retiree. Thanks.

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Just-Lisa-Now-
Level 15
Level 15
Could have sent a letter out asking for confirmation that they wanted it to be distributed since it wasnt required and if no response, they didnt send it?

I had a few of them we had to call the bank and see if they got it and the 1099R was just missing, or if it was never sent.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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Just-Lisa-Now-
Level 15
Level 15
In 2020 some banks didnt send the RMD unless the client called in and requested it....its made it hard to know did the client NOT take a distribution, or did they just forget to bring me the 1099R.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
PATAX
Level 11

I think that is what may have happened. What I cannot understand is how a bank or a retirement plan administrator can do that? If it is an elective deferral of RMD the person has to state that they do not want the RMD,  not the other way around?....Maybe I am missing something but something doesn't sound right....

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Just-Lisa-Now-
Level 15
Level 15
Could have sent a letter out asking for confirmation that they wanted it to be distributed since it wasnt required and if no response, they didnt send it?

I had a few of them we had to call the bank and see if they got it and the 1099R was just missing, or if it was never sent.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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PATAX
Level 11

Yeah that maybe is what happened... The client is an elderly lady....... How many people actually read those letters and understood what it said, especially in an area where there are a lot of immigrants who may not understand what is being asked... Doesn't sound right... and of course that ends up benefiting the financial institutions since they get to keep that money longer, unless I am missing something... Just my opinion

PATAX
Level 11

Thanks Lisa.... You are number one...