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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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Top heavy?

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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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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My point is vesting, and therefore the correct date for the first RMD.

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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