In 2001, required IRA distributions follow new rules. The new rules are also available for distributions from pension plans, but the plan will have to be amended to reflect the new rules and that won’t happen until 2002.
Nevertheless, you can use the new rules in 2001, even if your plan cannot. Suppose, for example, your minimum distribution required by December 2001 is $12,500 under the old rules. Under the new rules, only $8,000 must be withdrawn. The plan could distribute $12,500 to you under the old rules and you can roll over the $4,500 excess to an IRA as long as the rollover is completed within 60 days. The net result is that you are only paying tax on the amount required under the new rules.
