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MRDs with in service provision

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Owner only pension plan. NRA is 75 (65+5). MRD will be taken as an annual single sum payment equal to 12 x prior year monthly accrued benefit in December each year. With an EOY valuation, the actuarial equivalent of the MRD must reduce the accrued benefit used to compute FT under 430(d)-1(c)(1). Didn't use cliff vesting. Is there another way to do the MRD without a funding impact?

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Not really.  Just do it.

Additional service may result in increased accruals.

On your reduction of benefits, do you have actuarial equivalence increases for deferred retirement. If so, that basically makes the payments neutralized.

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David--The plan is " top heavy" but there are no other employees, so it has no impact as the docs state TH Min is only for non-key employees.

I was hoping to find someone who has been doing this so I could compare notes. What do others do with the annual MRD distribution method? Is there a required distribution form that must be executed each year? I mean other that an initial disclosure that this method has been selected to satisfy the MRD. The regs under 401(a)(9) seem to be poorly written and difficult to follow, as least for me.

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